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Survey: PC market bouncing back

Deloitte survey shows gross margins at close to five-year high

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A report from consulting company Deloitte has predicted an upturn in the PC market. According to Deloitte, its PC-Cite report, which covers Q3 of 1998, shows that optimism is at a five-year high. That optimism is fuelled by a shift to different channel strategies, particularly in the e-commerce arena, Apple's success with the iMac and a feeling that the Asian recession will not affect the PC market. A gross margin index which Deloitte constructs, increased by over 13 per cent in the period, close to a five year high, according to the report. Charles Goldenberg, a partner in Deloitte Consulting, said: "This up trend is the result of the PC industry making significant changes very quickly, including taking advantage of the e-commerce explosion, streamlining inventory and bringing exciting new products to market. These shifts in the way PC makers do business have helped it rebound from the doom and gloom of earlier this year." He said that the combined inventory index showed a substantial decrease of close to 18 per cent in the quarter, with PC makers showing substantial increases in sales." "This decline is good news for the PC manufacturers and shows that the supply chain is healthy," he said. ®

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