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

To: Stoctrash who wrote (29858)	2/23/1998 3:31:00 PM
From: DiViT	Respond to of 50808

It's just a fad.... Proliferation of DVD PCs, Low-Cost Kits Spur Sales Roger C. Lanctot 02/23/98 Computer Retail Week Page 07 Copyright 1998 CMP Publications Inc. New York-A spike in sales of DVD -ROM kits and a proliferation of DVD -ROM-equipped PCs in December are breathing life into the DVD market despite a lack of software at retail. Four new PCs with integrated DVD -ROMs arrived last week to a warm reception at retail. And December sales reports from Reston, Va.-based PC Data showed sales of DVD -ROM kits more than doubled in December compared to November, while sales of PCs with DVD -ROM drives captured more than 11 percent of the retail unit sales share. That was a huge jump from the 0.6 percent share in September. Unit sales in December for PCs with integrated DVD -ROM drives increased 41.8 percent compared to November, versus a 26.3 percent increase in overall PC unit sales. Hewlett-Packard last week rolled out two new DVD -ROM-equipped Pavilions, and Compaq added two similarly equipped Presarios. All of the systems come with Pentium II microprocessors, ranging from 266MHz for the Presario 4640 to 333MHz for the Pavilion 8280. The growth in sales of DVD -ROM-equipped PCs may be somewhat dampened, though, by short supplies of 8GB hard drives for the newest models, according to retailers. Some said they can't keep enough of the Pentium II 300MHz and 333MHz DVD -ROM PCs in stock for the early adopters buying them because suppliers are short of components. Retailers also said 266MHz models are considerably less popular. "The guy who wants these PCs wants it all, and he wants the best," said one merchandise manager for a national chain who asked not to be named. He said potential buyers have already begun to turn up their noses at 266MHz models with DVD drives, which does not bode well for the Presario 4640. "We expect that piece to be short-lived," said another PC buyer who asked not to be named. Retailers have found that even a $100 price difference between a DVD -equipped and a non- DVD model with a 266MHz processor can be too much of a step up for some customers. Perhaps the most surprising aspect of the run on DVD PCs is that only a handful of titles exist in stores, although DVD movie sales average 100,000 units a month, according to retail sales auditors Videoscan, Westlake Village, Calif.