Feeds

Xmas PC sales slump: the proof

First decline

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.