Small business PC sales to reach 8.8 million units in 1998
Paul:
Here is some interesting and useful information.
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Source:IDC
IDC Reports Small Business PC Sales to Reach 8.8 Million in 1998 as Manufacturers Refine Market Programs to Increase Customer Loyalty
FRAMINGHAM, Mass., Nov. 9, 1998 – While the total U.S. market for personal computers has been growing dramatically, the small business segment has been growing even faster. The latest research from International Data Corporation forecasts annual PC shipments to small businesses will top 8.8 million in 1998, up 20 percent from last year. Over 24 percent of all PCs will go to small businesses this year, a percentage that will continue to grow in 1999.
The U.S. Market for Personal Computers 1997-1999
1997 1998 1999 CAGR
Total Shipments (M) 31.5M 36.0M 41.0M 14.1%
Total Shipments to Small Businesses (M) 7.3M 8.8M 10.1M 17.6%
Percentage to Small Businesses 23.2% 24.4% 24.6%
CAGR = compound annual growth rate
Source: IDC, 1998
Raymond Boggs, who directs IDC's Small Business Markets research, noted that PC manufacturers are targeting small businesses as never before. "Dell, Gateway, Hewlett-Packard, IBM, and now Compaq are all refining product and promotional efforts to appeal to small businesses, with the Internet and direct contact playing an increasingly important role," he said.
Direct support of small business not only helps to keep costs down, but can help improve customer loyalty. New IDC research notes that small businesses vary widely in the extent to which they would purchase the same brand PC brand they currently own. Only about 40 percent said they would definitely repurchase the same brand they currently own, although those selling direct generally benefit from greater customer loyalty.
According to IDC, the PC makers with the most loyal customers are Gateway and Hewlett-Packard. Almost two-thirds of Gateway owners and over half of H-P owners that plan to buy a new PC in the next 12 months expect to stay loyal. Almost half (46.7 percent) of Dell customers expect to stay with Dell, and roughly one-third of other PC owners are similarly loyal. Only Packard Bell/NEC was associated with modest loyalty, with just 10.7 percent of current owners including the Packard Bell name on their shopping lists.
While about one-third of firms indicate "Don't know" as the preferred brand for future preference, many will return to their current brand when the time comes to make a commitment. "Small firms are always checking to see if another brand or dealer represents a better choice, but past experience with a brand continues to be an important factor in new PC selection," said Boggs.
Small Business PC Brand Loyalty
(Percent of Buyers Planning to Add Same Brand Currently Owned)
Gateway 63.8%
Hewlett-Packard 53.3%
Dell 46.7%
Compaq 37.9%
IBM 36.2%
Apple 34.3%
Packard Bell/NEC 10.7%
Source: IDC, 1998
IDC's research bulletin, Brand Loyalty and the Small Business PC Market, will be published this month and is available for purchase by contacting Janis Dempsey at 800-343-4952. Reports can also be ordered on IDC's web site (http://www.idc.com).
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