To All, CNBC actually had a great report of consumer pc sales, or lack thereof, today. For the first time ever, they admitted that sales growth was negative in 1998. Hey, it's only April 1. By 2010 they ought to have the exact figures. <g>
IDC said that unit sales peaked in 1998 and will not likely hit those levels again. With ASPs down, revenue growth in the pc market is now a cyclical phenomenon, not a secular one. Very different from their printed stuff, or, at least from the printed stuff I've seen.
However, OEMs are going to make up the shortfall by: 1. Moving aggressively into business sales. No comment about the fact that consumer box sales were and are much stronger than business box sales. <g> 2. Into server sales. Negative revenue growth there last year, along with workstations. That's a good move. 3. Peripheral sales. Oh, yeah, all those giveaway printers and monitors are there because they are selling so well. Can anyone name another hot selling peripheral that has anywhere near the ASP of the box itself? Nonsense. 4. Software and services. Pretty soon there will be 5 service reps selling crapola programs for every box in existence. <g> At least they can fudge the accounting in this area.
In other words, now that the past is far enough behind us, they agree with the real world that we've seen all along. However, the future is so bright they have to wear shades. Just like last year. <g>
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