To: Jim McMannis who wrote (103519 ) 5/18/2000 8:43:00 PM From: greenspirit Respond to of 186894
Jim, Article...PC makers face disappointing sales... Date 17/05/2000 eonews.net Sales of desktop computers slow as world turns mobile Sales of desktop computers are slowing, according to figures this week. Dataquest, a subsidiary of Gartner Group, reports that sales across Europe grew by only 6 per cent in the last year, while sales of notebook computers increased by 38 per cent. ?The desktop PC drives the whole European PC industry, so the failure in growth rates has damped down the whole market,? said Howard Seabrook, vice-president of systems at the research firm. This is bad news for companies that rely on PCs for profits - the market is far less profitable than it once was, as PC prices tumble and products become commodities. To keep revenues stable, companies need to ship ever more desktop machines. PC sales slipped because businesses concerned with the millennium bug were not buying new machines at the end of 1999 and early 2000. In addition, manufacturers have been hit by the falling prices of laptop and sub-notebook machines, which offer the same functionality as desktop PCs in a smaller package. The UK was the largest market for PCs in Europe, after Germany, with British PC sales up 8.9 per cent over 1999 figures. In the first three months of this year, 1.5m PCs were sold in the UK, according to Dataquest. But even this figure is disappointing for the PC manufacturers, said Seabrook. ?The market didn?t bounce back in the way many had been hoping,? he said. ?Six months is a long time for the market to be in a slump, and at this stage, anything less than double digit growth isn?t good enough.?