here's why:
American PC Sales Slow Sharply as Prices Rise
SAN JOSE, Calif. -- In an ominous sign for PC vendors, U.S. sales of desktop computers have slowed sharply in the past three months as corporate customers debate whether to upgrade and consumers ponder the need for expensive replacements.
While quarterly data from research firms Dataquest and IDC differed by several percentage points on an increase in worldwide sales, both firms' data suggested U.S. sales continue to drag as relatively cheap, powerful PCs saturate the market.
"Demand is still there, but we're not seeing the volume that we saw last year at this time," said analyst Anne Bui, whose firm IDC found worldwide shipments rose to 30.1 million, a 14.5 percent increase. Of that number, computer manufacturers shipped 11.7 million units, up only 7.5 percent.
"Consumers are befuddled about all the bells and whistles being offered and haven't been given a clear message about why they would need to replace their PC," said Bui, who suggested stabilizing prices on the low-end, sub-$1,000 market also has led to reduced purchases.
On the corporate side, sales have slowed as many companies delay purchases while deciding whether they should upgrade to any of several Windows 2000 product offerings comings this year from Microsoft Corp, said Dataquest analyst Charles Smulders. |
