US NUMBER OF COMPUTERS BEING SOLD CONTINUES TO RISE
October 25, 2005

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Research and Markets: The number of computers being sold continues to rise but at cheaper prices, which has resulted in a 3% decline in revenue from 2000 2005 in the United States market.


M2 PRESSWIRE-OCTOBER 25, 2005-Research and Markets: The number of computers being sold continues to rise but at cheaper prices, which has resulted in a 3% decline in revenue from 2000 2005 in the United States market. ©1994-2005 M2 COMMUNICATIONS LTD

Dublin: Research and Markets (http://www.researchandmarkets.com/reports/c26553) has announced the addition of Home Computers in the United States to their offering

Sharply falling prices have put the brakes on revenue growth in the U.S. home computer market. While the number of PCs sold continues to rise, any added revenue has been offset by falling prices, resulting in a overall decrease of 3% between 2000 and 2005, with estimated sales of $13.4 billion in 2005, compared to $13.8 billion in 2000. Falling prices have turned the PC into a commodity, and future revenue growth in the industry will depend on innovation and competition for market share, rather than inherent demand for an expensive product. Manufacturers will compete to de-commodify their products through branding, product differentiation, and innovation. Innovation that accommodates consumers' dependence on mobility and multimedia communication and entertainment are already driving the market, and will continue to drive the market well into the future.

Falling prices will continue to increase sales volume, but will decrease sales dollars. A steady economic outlook bodes well for the industry, though changes in interest rates and disposable income are uncertain. Increased product differentiation will continue to drive laptop sales and increase sales dollars for the most innovate manufacturers.

For the purposes of this report, the terms "personal computer" or "home computer" are used to indicate a computer in a private residence that contains a microprocessor, an operating system, and a keyboard and/or mouse device.

Portable, laptop (notebook) computers are also included. This report does not include the markets for electronic, personal digital assistants or other hand-held devices, such as electronic calculators or hand-held games, but does discuss how those markets may affect PC sales.

Because the home computer is often used for work and pleasure in the mobile lifestyle, "home computer" includes the home office market for PCs. These machines are generally purchased through traditional retail channels, for business, education, and/or leisure use in the home. The home office market is distinctly residential and different from the business-to-business sector, which supplies corporate enterprises and institutions with computers. The terms home office, retail, and consumer market are used interchangeably in this report to indicate purchases destined for the home computer user.

Although this report is only focused on the home PC market, it does not include ownership data on peripheral such as CD-RW drives, memory, monitors, scanners, software, and speakers. However, many PCs sold through retail channels include bundled hardware or components at the time of purchase or both, and the value of overall PC sales will include these items.

Companies Mentioned

Dell Inc. Hewlett-Packard Gateway Inc. Apple Computer IBM/Lenovo Toshiba Corp. Sony Corp.

For more information visit http://www.researchandmarkets.com/reports/c26553

CONTACT: Laura Wood, Senior Manager, Research and Markets Fax: +353 1 4100 980 e-mail: press@researchandmarkets.com

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October 28, 2005