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The Bangladesh IT market continued to power forward in 2005,
overcoming broader national challenges to post solid growth. The PC market –
the cornerstone of the country's IT market – expanded by 16.4 percent in
2005 to 162,400 units, generating a value of $129.4 million.
The market received a boost from strong economic growth, low
PC penetration and government efforts to encourage automation, such as a drive
to equip schools with computers in the country. A decrease in prices also helped
fuel growth, especially in the laptop segment, which expanded by 24 percent in
2005. Another key market driver in the country was the growing attention the
market garnered from leading international IT vendors.
"As IT markets across the globe mature, international IT
vendors are being pressed harder to generate growth. With one of the world's
largest populations, strong economic growth and a promising IT workforce,
Bangladesh is increasingly on the radar screens of the world's IT industry
juggernauts," said Dane Anderson, VP, Spring-board Research.
With one of the world's largest populations, strong
economic growth and a promising IT workforce, Bangladesh is increasingly on the
radar screens of the world's IT industry juggernauts. Locally assembled,
branded machines continued to dominate the market. Among international vendors,
HP led the market with a 7.6 percent share of shipments in 2005, followed by
Dell and Lenovo/IBM. A local brand increasingly seen as a viable alternative to
international players was Daffodil Computers, which made several strategic
announcements in the fourth quarter of the year.
The large enterprise and government sectors collectively
accounted for almost half of total PC/server shipments in 2005. In the
enterprise market, banks and telecom companies were the largest vertical
industries for IT spending.
The Bangladesh PC/server market is expected to continue
overcoming challenges to post healthy market growth. Springboard forecasts 21.6
percent PC shipment growth in 2006, and expects the market to maintain similarly
strong levels of expansion throughout the forecast
period.
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