To: Mohan Marette who wrote (18736 ) 3/2/1998 9:45:00 AM From: Nick Read Replies (2) | Respond to of 97611
Monday March 2, 9:04 am Eastern Time Company Press Release No. 1 Personal-Computer Brand Is 'Unbranded' CMP Media Research Reveals "White Boxes" Top Compaq and Other Major Manufacturers' 1997 Unit Sales MANHASSET, N.Y.--(BUSINESS WIRE)--March 2, 1998-- The most popular brand of personal computer in North America in 1997 was ''unbranded,'' according to research conducted by CMP Media's Channel Information Services--Research & Consulting (CIS). The more than 6.4 million so-called ''white boxes,'' assembled and sold by computer consultants and resellers, surpassed the sales of each of the major personal-computer (PC) manufacturers, including industry-leading Compaq Computer Corp. (NYSE: CPQ - news) at 5.1 million units. The CIS report, ''Identifying Market Opportunities: Channel Assembly and White Box Market Analysis,'' rounds out 1997's top five brands with Dell at 2.9 million units, Packard Bell/NEC at 2.8 million units and IBM at 2.7 million units shipped. Among the nearly 96,000 North American computer consultants, network and systems integrators and resellers identified by CIS, approximately 35,400 build their own unbranded or generic PCs, representing a $7.6 billion market. Accelerated technology product cycles were among the reasons given for the high number of built-to-order PCs. Innovations in processors at faster rates coupled with greater complexity gave computer consultants and resellers more opportunities to custom-configure systems to meet specific needs of their customers. ''Today's end-user buyers are more knowledgeable and therefore more demanding,'' said CIS Senior Director Richard March. ''Customers are likely to make purchases based on their own specifications instead of PC brands. The 'Intel Inside' campaign, which raised awareness of PC components, helped validate the white-box market,'' he added. CIS found that high percentages of white-box PC resellers reported using brand-name components in their systems. Examples include Intel motherboards, Western Digital disk drives, Kingston Technology memory modules and Creative Labs multimedia boards. CIS also learned that the median business relationship between white-box resellers and customers is seven years, because of the system service, support and upgrading capabilities provided to clients, many of which are small businesses lacking resident information-technology personnel. The average relationship with computer consultants and resellers that do not build computers is five years. The full report also examines issues relating to channel assembly and opportunities for component manufacturers, brand-name PC vendors, distributors and reseller organizations. Channel Information Services relied on multiple sources to develop this report, including its own database of the North American computer-distribution channel. Telephone surveys about the white-box market were conducted for CIS by the Gallup Organization, Inc. Figures on branded personal-computer shipments for 1997 were estimated by Dataquest, Inc. Additional information about ''Identifying Market Opportunities: Channel Assembly & White-Box Market Analysis'' and review copies for the media is available from Richard March at (516) 733-8645 or via e- mail at rmarch@cmp.com. Channel Information Services--Research & Consulting offers marketers the most comprehensive information resources available concerning technology distribution-channel opportunities. Its team of research professionals provides qualitative and quantitative studies as well as annual benchmarks on channel-wide trends and preferences. Marketers can access this knowledge through CIS-branded studies published by CMP Media's Channel Group and by commissioning sponsored studies conducted by third-party research specialists. CMP Media Inc. (Nasdaq: CMPX - news) is the only high-tech media company providing essential information and marketing services to the full technology spectrum--the builders, sellers and users of technology worldwide. With its portfolio of leading newspapers, magazines, Internet products and conferences, CMP Media is uniquely positioned to offer marketers comprehensive, integrated solutions tailored to meet their individual needs. Online editions of the company's print publications, which include EE Times, InformationWeek, Computer Reseller News and Windows Magazine, along with products and services created exclusively for the Internet, can be found on CMPnet at cmpnet.com . NOTE: For more about CMP Media Inc., including recent press releases, investor information, executive bios and directions to CMP offices, visit cmp.com .