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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (75308)	1/6/2000 3:39:00 PM
From: Captain Jack	Respond to of 97611

LAS VEGAS, Jan 6, 2000 /PRNewswire via COMTEX/ -- At the opening of the Consumer Electronics Show, Channel Marketing Corporation, headquartered in Dallas, Texas, [http://www.cmcus.com] a leading technology industry market research and strategy firm, announced it sees a significant sales slowdown in the consumer segment of the desktop PC market for the current quarter. Multiple fundamental factors in the marketplace will account for this slowdown on top of normal seasonal trends. In fact, Channel Marketing believes that for the first time in recent years, first quarter 2000 unit sales of consumer desktop PCs in the United States could be flat to down from the same quarter last year. Among the leading market fundamentals that Channel Marketing believes will drive a reduction in consumer PC purchasing behavior, Channel Marketing cited the following seven: -- TECHNOLOGY - No new significant technology introductions in the consumer PC market space during the quarter to drive replacement PC sales. -- STABLE PRICING - No new lower price points in the desktop PC segment to bring new customers into the market. -- NOTEBOOK PCs - Continued growth in the sales of consumer notebook PCs driven by new lower price points and greater product availability at retail. -- INTERNET REBATES - A drastic reduction in the consumer perceived value of the $400 Internet rebates that drove sales higher in the second half of 1999, as consumers will have dozens of choices for free Internet access in 2000. -- LESS COMPETITION - Fewer PC units and brands available at retailers as IBM and Packard Bell/NEC opt out of the consumer market, which will lead to fewer consumer PC products advertised and promoted. -- PRODUCT MIX - A shift by major PC brands to focus on more profitable, mid priced consumer PCs, for example Compaq's new EZ PC series. -- SUPPLY CHAIN - Some continued parts shortages and a focus for PC manufacturers to build lower unit volume, but higher priced and more profitable desktop PC units as a result of these shortages. David M. Goldstein, Channel Marketing Corporation's President and CEO said, "This year consumers will focus on faster Internet access, not on faster PCs. Our nationwide research has shown that four of the top five applications most commonly used by consumers on their PCs are not processor or speed dependent, and half of those four are bandwidth dependent. The research also shows consumers are smart and realize faster PCs don't let them get faster Internet access, thus driving a slowdown in the replacement desktop PC market."