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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Pierre-X who wrote (2801)	3/12/1998 2:32:00 PM
From: Mark Oliver	Read Replies (2) \| Respond to of 9256

PC Penetration Rate Continues Slow, Steady Growth, Says Odyssey's Latest Study Reduced Prices Have Not Changed Proportion of First-Time Buyers SAN FRANCISCO--(BUSINESS WIRE)--March 12, 1998--According to Odyssey's latest Homefront study, 42 percent of American households now have PCs, compared with 39 percent six months ago. Odyssey is the nation's only independent market research firm dedicated exclusively to studying consumers, technology, and at-home entertainment and information and has been conducting the Homefront study twice a year since July 1994. Despite attempts by PC makers to increase penetration more rapidly by introducing PCs priced below $1,000, growth has remained slow and steady, with repeat buyers continuing to account for two-thirds of PC purchasers. The sub-$1,000 PC did not lure the number of new customers systems manufacturers had hoped for, explained Odyssey President Nick Donatiello. ''PC manufacturers and retailers -- and supporters of the sub-$1,000 PC -- were certain that lowering prices would create a stampede of first-time buyers,'' said Donatiello. ''And while the cheaper systems have lowered profit margins, large numbers of new customers have thus far not materialized.'' Every six months, the Homefront study tracks the home market for computers, multimedia CD-ROM and online services. A summary of findings follows. Market Penetration of Home Computers and Related Products (Percent of U.S. Households) Jan Jul Jan Jul Jan Jul Jan Jul 1998 1997 1997 1996 1996 1995 1995 1994 Computers 42% 39% 37% 36% 35% 32% 31% 27% CD-ROM 31% 26% 23% 20% 15% 13% 9% 6% Drives Online(a) 23% 19% 17% 14% 11% 9% 7% 6% (a) Includes the Internet, World Wide Web and commercial online services. Consumers Who Bought a Home Computer in the Previous Six Months Jan Jul Jan Jul Jan Jul Jan 1998 1997 1997 1996 1996 1995 1995 First time 35% 32% 32% 43% 49% 48% 49% buyers Repeat buyers 65% 68% 68% 57% 51% 52% 51% About Odyssey Odyssey is the nation's only independent market research firm dedicated exclusively to studying the complex and changing relationship between consumers, technology, and at-home entertainment and information. The Homefront survey seeks to understand what is really happening in homes with personal computers, and is designed to provide reliable hard data on this important market. Research is based on interviews with 2,500 consumers. The random-digit-dial, computer-generated sample closely matches the U.S. census and is representative of all U.S. households. In addition to Homefront, each year Odyssey conducts the largest and most comprehensive research study of consumers and new media. This massive research effort includes a national survey of 6,000 consumers supported by qualitative research in various regions of the country. The objective is to determine the relevant market segments for at-home entertainment, information, communications, and commerce and understand what is going to motivate consumers to adopt new media products and services. Note to Editors: Odyssey is based in San Francisco. For additional information, press may contact David Hawk or Marivi Lerdo at 415/433-5381. Companies interested in purchasing Odyssey's research can reach the company at 800/742-1792 or via email at info@odysseylp.com.