Feeds

PC sales growth slows

And the margins have gone through the floor

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

PC sales have shrunk to 15 percent annual growth from 25 percent in 1994, with margins at 1.3 percent compared with 30.1 percent in 1995. Average selling prices in the US have dropped 10 percent so far in 1998. However, the top four PC makers -- Dell, Compaq, HP and IBM -- still only account for 37 percent of the market, which confounds theories that markets shake out to one dominant player. The reason? Let's call it competition. The big four will get bigger, according to Mark Specker, a financial analyst with SoundView. He said that IBM is growing at 150 percent of the market rate, and Dell at 400 to 600 percent. Compaq should be OK since half its income is from server sales. He also sees Packard Bell NEC, Acer, AST and most European vendors (with the possible exception of Siemens) declining. The emphasis now is the server and workstation market where there are still profits to be made. Nobody seems to be mentioning that in their haste to compete with the anticipated $500 NC, the PC industry rendered itself unprofitable in the consumer market. Now falling prices will wipe out any profit from growth. ®

Intelligent flash storage arrays

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.