The Grinch may steal Christmas after all, at least for leading computer makers.
Published:
6 December 2000 y., Wednesday
PC companies and retailers banking on a sales pickup in the fourth quarter are bracing for bad news. Consumers are not flocking to buy new PCs during the holidays as anticipated.
Sales, in fact, are downright dismal, with market researcher NPD Intelect reporting retail PC sales in October plunging 18 percent year over year. In addition, direct computer seller Gateway warned that its earnings per share for the quarter would come to approximately 37 cents a share, considerably below expectations of 62 cents a share,because of slow sales. For the most recent week of data available, retail PC sales from Nov. 12 through Nov. 18 were down 24.6 percent from the same period last year by units and down 21.9 percent in dollars, according to research firm PC Data. The news caps off a year of slower-than-projected PC sales and validates prognosticators who had warned of an overall market slowdown. A convergence of events, including a slowing economy, shifting sales to other technology products,and a saturated North American PC market, contributed to the unexpected sales slowdown, according to analysts.
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