Thirty Percent of Home PCs Bought in Past Six Months Purchased Through the Internet or Directly From Manufacturers, Reports Odyssey's Homefront Study
Business Editors & High-Tech Writers
SAN FRANCISCO--Oct. 4, 1999--
Online Service Penetration Increases to 37 Percent, But PC
Penetration Remains Steady at 52 Percent.
Odyssey's latest Homefront study of home computing trends revealed that 30 percent of the PCs bought in the past six months were purchased through the
Internet or directly from the manufacturer via a website, catalog, or 1-800 phone number, as compared to only 22 percent of those purchased more
than six months ago.
Odyssey conducts the Homefront study every January and July. Based on random-digit-dial telephone surveys with 2,500 U.S. households, Homefront
is the most reliable source of information about PCs, online services, and other home entertainment and information products.
"PC purchasers are increasingly turning to direct purchase channels to find the value and service they crave," said Odyssey President and CEO Nick
Donatiello. "The proliferation of PCs into the majority of households has created a more educated customer base, one focused on getting exactly what
they want from a PC, while avoiding crowded stores and pushy salespeople."
Following a strong 5 percentage point gain from July 1998 to January 1999, PC penetration remains statistically unchanged at 52 percent, compared
with 50 percent six months earlier. Despite insignificant changes in PC penetration over the past six months, penetration of online services
continued to rise steadily. Homefront reports that online penetration is currently at 37 percent of U.S. households, up from 33 percent in January 1999.
Although the PC industry has used price slashing effectively over the past two years to generate demand, the proportion of non-PC households that
cite price as an important factor in their decision not to purchase a PC has decreased significantly over the past six months -- from 31 percent to
25 percent. During this time, the proportion of non-PC households who report that they either have no need for a PC or no interest in buying
one has increased from 30 percent to 41 percent, once again becoming the most commonly stated barrier to PC ownership. "The challenge that
PC manufacturers currently face is giving non-PC households a reason to buy a PC. Manufacturers need to better communicate the benefits of the
PC as an entertainment, communication and information medium if they hope to convert these reluctant buyers," said Mr. Donatiello.
Market Penetration of Home Computers and Related Products
(Percent of U.S. Households)
July Jan. July Jan. July Jan.
1999 1999 1998 1998 1997 1997
Computers 52% 50% 45% 42% 39% 37%
CD-ROM Drives 41% 41% 36% 31% 26% 23%
Online(a) 37% 33% 27% 23% 19% 17%
July Jan. July Jan. July
1996 1996 1995 1995 1994
Computers 36% 35% 32% 31% 27%
CD-ROM Drives 20% 15% 13% 9% 6%
Online(a) 14% 11% 9% 7% 6%
(a) Includes the Internet, World Wide Web, and commercial online
services.
Percentage of Home PCs Bought Directly from the
Manufacturer or through the Internet
(Via website, catalog or 1-800 phone number)
Jan-July '99 July '98-Jan. '99 Prior to July '98
30% 19% 23% |
