Table of contents
China’s growth presents opportunities but introduces new competitors for US TMT 3
China’s enterprise tech demand is small but rapidly expanding, while its global impact on broader TMT appears larger 4
Take note of changing seasonality, as BRICs contribution to global tech spend rises 9
China as a source of opportunity 13
CommTech—a big opportunity for handsets, networking, and LCD TVs, but pricing a risk 14
Hardware—China continues to provide incremental growth for PCs 16
Internet—heavy government intervention has gated success of US-based companies 19
IT Services—the next large pool of talent for global delivery 21
Media/Entertainment—attractive demographics, heavy regulation, 3D opportunity 22
Semiconductors, SPE—China increasingly important as end-market 24
Software—a potentially large market opportunity tempered by piracy issues and preference for local incumbents 26
China as a source of global competition—increasingly a threat in some US TMT sectors 27
CommTech—intensifying competitive pressure from China, led by Huawei and ZTE 28
Hardware—China-based vendors pose competitive threat in PCs, less on enterprise 29
Internet—we do not expect China internet companies generally to compete outside China; Tencent, Alibaba.com on radar screen 30
IT Services—Consulting and Outsourcing: Emerging competition appears Asia-focused 31
IT Services—Transaction Processing: China Union Pay could aim at global payments 31
Semiconductors, SPE—Taiwan companies competitive in semis, less China threat in SPE 32
Solar—Chinese makers dominate in crystalline silicon, helped by low cost 34
Disclosures 38