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To: Paul Dieterich who wrote (40596)	11/18/1997 1:06:00 PM
From: Paul Dieterich	Read Replies (1) \| Respond to of 186894

Sub-$1,000 PC sales slip By Margaret Kane November 17, 1997 1:13 PM PST ZDNN The sub-$1,000 PC market came back to earth in September, but retail Chicken Littles can relax -- the sky isn't falling. The latest monthly survey on retail figures from Computer Intelligence showed that 27 percent of all PCs sold in retail stores cost under $1,000. This compares to August, when sub-$1,000 machines led the market, making up 39 percent of all retail PC sales. The 27-percent figure was more in line with typical sub-$1,000 sales, which had hovered at around 22 percent in May, June, and July before the upward spike in August. For September, PCs selling for between $1,000 and $1,500 made up the biggest part of the market -- 39 percent. But CI's researchers don't think the market for sub-$1,000 PCs is going away, and one of the main reasons is Compaq Computer Corp. has thrown its formidable weight behind the segment. "Compaq has been able to displace the traditional price brands and is forcing other mainstream manufacturers to scramble to react," said CI's Matt Sargent. "What is amazing is that, so far at least, the rest of the industry seems to be letting Compaq walk away with this amazing market." According to CI's figures, Compaq has grabbed a whopping 67 percent of the sub-$1,000 market, with Packard Bell a distant second at 20 percent. And while Compaq is the unquestioned leader in the consumer space, its overall lead is much lower. CI said that in September, Compaq had 37 percent of the retail market, compared to 25 percent for Packard Bell. "By continuing to offer attractive products in the low-end space, Compaq is making the sub-$1,000 space a critical category for vendors who want to play in retail," Sargent said.