The number of PCs sold in China containing legal copies of Microsoft's
Windows operating system doubled in the first quarter from the fourth, as major
vendors joined a campaign to stamp out piracy, new data showed.
Some 48 percent of PCs shipped in China in the
three months through March came with legal copies of Windows already installed, compared
with 25 percent in the fourth quarter of 2005, according to figures supplied
by data tracking firm International Data Corp. (IDC).
The big jump came as the country's major homegrown vendors, including Lenovo
Group Ltd. (0992.HK), Founder Group, Tsinghua Tongfang (600100.SS) and TCL Corp.
(000100.SZ), signed a recent series of landmark deals agreeing to load legal
copies of Windows onto most or all of their PCs sold in China.
Lenovo announced the first such deal late last year, with most of the other
companies following suit in the spring.
Many such vendors previously sold PCs with free operating systems such as
Linux or none at all, in what many saw as an invitation for buyers to take those
PCs out to small shops where they could then have pirated copies of Windows
installed.
Observers believe the Chinese vendors signed their deals with Microsoft in April
under pressure from Beijing, which is making serious efforts to stamp out piracy.
In late March, the Chinese government went so far as to issue a decree
requiring PC makers to install a licensed operating system on each machine
before it left the factory.
The major PC
makers, along with global giants Dell Inc. and Hewlett-Packard Co. and Taiwan's Asustek
Computer Inc., now account for about three-quarters of PC sales in China,
according to IDC.
Thus, even if all those agree to install legal windows on their computers,
many of the remaining 25 percent, which carry little-known brands or no brands
at all, could continue to sell without legal copies of the Microsoft operating
system.
IDC analyst Bryan Ma said a general price increase was observed for PCs with
Windows installed in the first quarter compared with comparable models sold
without the operating system in the fourth.
Windows usually retails for US$80 to US$100, but big buyers like Dell and HP that
buy huge quantities are believed to pay much less -- usually around US$50-US$55 per
copy, according to analysts.
China is the world's second largest PC market after the United States, with
19 million units shipped last year and the number expected to grow 17.6 percent
this year, according to IDC.
Windows now powers some 90 percent of the world's PCs,
and Microsoft estimates the figure could be even bigger in China. But the
majority of those systems in China are also believed to be pirated copies.