To: Sig who wrote (114909 ) 4/7/1999 8:36:00 PM From: Mohan Marette Read Replies (1) | Respond to of 176387
Home Network to increase PC sales? April 7, 1999What's a Home Network Without More Than 1 PC? Written by Dave Tremblay, Senior Industry Analyst Home networking is the new buzz-word. And Intel joined the fray this week when they announced a series of new products compatible with the Home Phoneline Networking Alliance (HomePNA) standard. The objective: to bring easy to set up, Ethernet-based networking to homes, which hopefully will accelerate home PC sales. Just how large a market is out there for these types of products, and what is it going take for them to really take off? Our Technology User Profile (TUP) studies will help shed some light on this whole new phenomenon. No one is going to argue that the home PC market has been really hot for the last few years. PC penetration in US households has gone up by about 10 points in the last two years. As a matter of fact, it has risen above 50%. Specifically, almost 52 million US households now have at least one PC - but the overwhelming majority of PC households still only have one PC. This hasn't changed much, despite the growth in the number of PC households. Information from recent TUP studies show that only about one-in-five (20%) of PC households have more than one PC, and that percent has been staying relatively constant over the past year or so. Still, that means there are 10 million US households with 2 or more PCs. What does that imply? These would be the same households that might consider the need for a home PC network. While this isn't quite the 17 million potential home networking households that Intel cites in its supporting literature, it is still a substantial market. So, now the question is, "Just who are these potential customers?" It should come as no surprise that the majority of those households with 2 + PCs fall into the upper income households with relatively knowledgeable owners. Actually, just over half of the households with 2 + home PCs have an annual household income of $60,000 or more (38% of households with only one PC fall into this same income bracket), while only 28% have income under $40,000 (again compared with 38% of households with one PC). (See chart below.) These multi-PC households are also more likely to have kids and to be middle-aged, and not surprisingly, are substantially more comfortable with PC technology. .... <Source:ZDIntelligence>