A couple of articles on the retail PC sector:
He said sales of sub-$1,000 PCs accounted for nearly 50 percent of all PC sales in
the quarter, and noted the company expects ASP declines to continue in the
second half.
Wade Fenn, executive vice president and director of marketing, said the declines
will come from a roster of new systems in the lower price points, including bundles
of system, monitor and printer for $900.
In the second half, he said, "Tier-one manufacturers will have price points and
products available that will continue to break new lows. We anticipate a new
customer demographic that hasn't yet stepped up and purchased."
As for ASP declines, Schulze added, "I wouldn't be surprised to see it continuing
next year."
207.240.177.145
Circuit City chairman and CEO Richard Sharp said results for the quarter included
"robust" sales of PC products, and cited the company's "effective inventory
management through the Windows 98 product transition."
At the same time, he noted, stronger personal-computer sales negatively affected
the company's gross profit margins. The gross profit margin for this quarter was
24.8 percent, compared to 25 percent in Q1 1997.
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