PC shipments drop, consumers to reap rewards

"Competitive pricing by major vendors in the month of December failed to increase consumer demand," said Andy Woo, analyst at Dataquest. He attributed this cautious buying environment over the quarter to several factors, including the continuing exchange rate fluctuation; negative reports of the US market; the lingering effects of the Olympics on the Australian market; and even the rising cost of petrol.

"The general slowdown in the overall economic environment and a loss of consumer confidence had a significant impact on the market," Woo said. "At the same time, the traditional boost in Christmas buying did not materialise. Simply put, pessimistic consumer sentiment resulted in a shift towards purchasing lower value items instead PCs."

The fourth quarter of 2000 declined by 18 per cent compared to the third quarter of 2000 and decreased by 11 per cent compared to the previous year, according to preliminary findings by Dataquest.

Although this slowdown may be bad news for suppliers, Woo said consumers can expect to benefit in the short term as vendors will need to slash prices further still to clear excess inventories. "Consumers can therefore expect some bargains during the first quarter of 2001."

Overall, Compaq had the greatest share of the PC market in Q4 with 14.2 per cent. It was ahead of IBM (13.8 per cent), HP (9.2 per cent) and Dell (8.1 per cent).

Looking ahead, Woo indicated positive growth is still forecast for 2001, saying small and medium business and the home market are expected to drive this growth. In addition, emerging technologies such as Bluetooth applications and Windows 2000 are expected to drive upgrades and the replacement cycle.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Howard Dahdah

PC World
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?