PCs to outsell TVs in 2000, Intel exec says

Worldwide PC sales will overtake television sales next year, driven by the availability of low-cost computers and the popularity of the Internet, predicted Paul Otellini, executive vice president and general manager of the Intel Architecture Business Group, in a speech at the Intel Developer Forum yesterday.

Last year in Australia, Canada, Denmark and Korea, PC sales already outnumbered sales of TV sets, he said, citing various industry sources. Intel expects that trend to be mirrored worldwide before the end of 2000, Otellini said.

At the same time, the popularity of low-cost PCs is driving down the average price of PCs, the Intel executive said. In last year's third quarter, sub-$US1000 PCs accounted for almost a quarter of worldwide PC sales, he said.

Analysts say Intel was caught off guard last year by the sudden surge in interest in sub-$US1000 PCs, helping rival Advanced Micro Devices gain some market share at Intel's expense. Intel has pulled its socks up since then, and is engaged in an aggressive price struggle with AMD to win back its lost share.

"We see that value PCs are a real part of the business, not just an aberration," Otellini said. While the budget PC has been largely a consumer phenomenon so far, "we believe low-cost PCs will come to the business market in the next couple of years," he said.

Intel defines "budget" PCs as those costing below $US1200.

While sales of low-cost desktop PCs continue to grow, users can expect to see the price of notebook PCs drop, too, he said. Over time, the price of an average low-cost notebook will fall from $US1900 to $US1500 to $US1200, he predicted.

"We're working with our industry partners to find the next price point. Maybe it will be $US999, we don't know, but we want to make sure we have the products in place to support that (lower price point)," Otellini said.

Intel also outlined plans for new processors and chipsets, some of which are designed to help it capitalise on the budget market. In the second half of the year it will increase the speed of its Celeron desktop processor to 500MHz, and jack up the speed of the mobile Celeron to 400MHz, said Albert Yu, senior vice president and general manager of the Intel's Microprocessor Products Group.

Meanwhile, the industry must work hard to attract the roughly 80 per cent of homes worldwide that don't currently own a PC, he said. Despite the challenges, worldwide PC sales will continue their double-digit growth march unabated, he predicted.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

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.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?