Feeds

Xmas PC sales slump: the proof

First decline

  • alert
  • submit to reddit

The essential guide to IT transformation

PC sales in the consumer sector fell 24 per cent in December compared to the previous year.

Retail and direct/mail companies shifted just over one million desktop PCs last month, with December representing the fifth consecutive month of figures lagging behind 1999.

Full year sales dropped 0.8 per cent on 1999 to 10.1 million, according to research by analysts at PC Data, which said 2000 was the first annual decline they had ever reported.

PC revenue for the Christmas month fell to $855 million, down nearly a third on the previous year. The price of desktops in the sector fell seven per cent to an average of $846.

December prices were down three per cent on November and nearly ten per cent on October.

"A spike occurred during the week before Christmas, but it fell short of the boost needed to lift overall sales during the holiday shopping season," said Stephen Baker, PC Data VP of technology products research and analysis.

He blamed several factors, including the success of ISP rebate programs in 1999, a slowing economic outlook, slightly higher prices in 2000, and a lack of consumers wanting to upgrade.

Around 2.5 million desktops were sold in the fourth quarter, 18 per cent down on the same period in 1999. Average selling prices fell to $872 from $878.

"Despite these poor PC results, the overall computer products business still looks like a good place to be. We anticipate that computer retailers will see a ten to 12 per cent increase in revenues for the fourth quarter, driven by the digital upgrade cycle as consumers shift purchases away from PCs and into the new 'digital toys'," said Baker

Handheld devices from vendors such as Palm sold like hotcakes - with sales more than doubling in November compared to 1999. Devices such as MP3 players, Web PC and digital cameras, and CD burners also showed healthy sales growth.

Industry heavyweights such as Compaq, Dell, Gateway, Intel and Apple have all complained that slowing computer demand may damage Q4 figures. ®

Related Stories

Palm laughs in face of PC panic
Xmas panic means PC fire sales
Intel to miss Q4 targets
Compaq joins profit warning parade
PC vendor bender
Dell chops US laptop prices

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
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.