PC Retailing - Ireland

INTRODUCTION AND ABBREVIATIONS

Definitions

Geographical, national and regional definitions

CONVERSION FACTORS

BMRB TARGET GROUP INDEX SAMPLE SIZES

ABBREVIATIONS

EXECUTIVE SUMMARY

EVOLVING TECHNOLOGY FUELS DEM IMPROVED PORTABILITY THROUGH WIRELESS TECHNOLOGY

CONSUMERS BUYING PCS AS MEDIA CENTRES

STRONG ECONOMIC PERFORMANCE DRIVING MARKET FORWARD

DIVERSE SUPPLY STRUCTURE ENSURES COMPETITION

DISTRIBUTION DOMINATED BY ELECTRICAL RETAILERS

CONSUMER RESEARCH INDICATES INCREASED PC USE AT WORK

BROADBAND WILL PROPEL MARKET FORWARD

MARKET DRIVERS

NEW TECHNOLOGY DRIVING THE MARKET FORWARD

New technologies focus on portability and connectivity

PC capabilities transformed by Broadband technology

Figure 1: Standard download rates for dial-up Vs Broadband (seconds), NI & RoI 2005

Internet communities growing

Music and movie downloads continue to grow in popularity

VPN and Broadband making working from home more effective

Broadband promoting economic development

Wireless promotes laptop growth

Laptop batteries

CD/DVD-RW encourage multimedia activity

Flatscreen monitors reduce desktop size

Hardware

CPU (central processing unit)

RAM (random access memory)

Hard drive

Graphics and sound cards

Software issues

Computer product lifecycles

MACRO-LEVEL FACTORS

Economic climate

Socio-economic changes

Figure 2: Socio-economic classification, NI, 2001-05

Figure 3: Socio-economic classification, RoI, 2001-05

Key economic indicators

Figure 4: Economic indicators for NI & RoI, 2002-05

Population

Figure 5: Population distribution, NI, 1998-2008

Figure 6: Population distribution, RoI, 1998-2008

PC penetration of population

Figure 7: Computer and Internet usage, NI & RoI, 2000-05

MARKET SIZE

Figure 8: Estimated computer market value by retail sales, NI & RoI, 2000-05

MARKET SEGMENTATION

Figure 9: Segmentation of PC market, NI & RoI, 2005

DESKTOP SALES WANING ON BOTH NI AND ROI

Figure 10: Estimated sales of desktop PCs, NI & RoI, 2000-05

LAPTOP MARKET SHOWING CONSIDERABLE GROWTH

Figure 11: Estimated sales of laptops and PDAs, NI & RoI, 2000-05

PERIPHERALS STEADILY INCREASING

Figure 12: Estimated sales of PC peripherals, NI & RoI, 2000-05

SUPPLY STRUCTURE

Figure 13: Major manufacturers’ share of global PC market, 2005

ACER

Figure 14: Acer's range of computers, 2006

APPLE

Figure 15: Apple's range of computers, 2006

DELL INC

Figure 16: Dell's range of computers, 2006

FUJITSU SIEMENS

Figure 17: Fujitsu's range of computers, 2006

HEWLETT-PACKARD

COMPAQ (HP)

Figure 18: Compaq's range of computers, 2006

IBM (INTERNATIONAL BUSINESS MACHINES)

Figure 19: IBM's range of computers, 2006

NEC (NIPPON ELECTRIC COMPANY)

Packard Bell (NEC)

Figure 20: Packard Bell's range of computers

SONY

Figure 21: Sony's range of computers, 2006

TOSHIBA

Figure 22: Toshiba's range of computers, 2006

DISTRIBUTION

Figure 23: Main computer retailers and number of stores, NI & RoI, 2005

HIGH-STREET RETAIL CHAINS

DID Electrical

DSG Retail Limited

Currys (DSG)

Dixons (DSG)

Expert Irel PC World (DSG)

Powercity

INTERNET-BASED RETAILERS

Amazoncouk

SPECIALISTS

Sony Centre

DIRECT RETAILERS

Dell Inc

Time/Tiny

INDEPENDENT RETAILERS

A1 Computers

AB Computers

Discount Computers

Nalcro IT Solutions

COMPONENT RETAILERS

Dabscom

E-buyercom

Marxcomputersie

THE CONSUMER

PC AT WORK

Computer usage at work remains relatively low in both NI and RoI

Figure 24: Total number of hours using a computer at work, NI & RoI, 2003 & 2005

Laptop ownership highest among males

Figure 25: Proportion of people who have a laptop for work by gender, age, socio-economic employment status, NI & RoI, 2003 & 2005

Laptop ownership prevalent among younger employees

Potential for growth high in both markets

Computer usage at work dominated by word processing tasks

Figure 26: Classification of reason for using computers at work, NI & RoI, 2003 & 2005

Database activity increasingly common

Internet usage at work continues to grow

Figure 27: Proportion of people using work computer to access the Internet by gender, age, socio-economic group and employment status, NI & RoI, 2003 & 2005

Internet access spans majority of the population

Internet usage dominated by ABC1s

Email access more prevalent among men

Figure 28: Proportion of people using work computer to access emails by gender, age, socio-economic group and employment status, NI & RoI, 2003 & 2005

Older age groups still cautious about new technology

Full-time workers more prepared to work from home

Figure 29: Proportion of people using work computer to work from home by gender, age, socio-economic group & employment status, NI & RoI, 2003 & 2005

Males more prepared for homework

ABC1s most inclined to work from home

PC AT HOME

Laptop usage increasing in both markets

Figure 30: Proportion of people whose home computer is a laptop by gender, age, socio-economic group household size and lifestage, NI & RoI, 2003 & 2005

Youth more inclined to own laptops

Personal use of laptops reflected in high ownership among independent individuals

Penetration reaches 50%

Figure 31: Proportion of people who own a home computer by gender, age, socio-economic group household size and lifestage, NI & RoI, 2003 & 2005

Ownership among ABs reaches 75%

Computer expenditure growing

Figure 32: Hardware expenditure for home use over the last twelve months, NI & RoI, 2003 & 2005

CD-ROM continues to dominate hardware market

Figure 33: Type of hardware owned as part of home computer, NI & RoI, 2003 & 2005

Majority use computer for less than five hours per week

Figure 34: Amount of time spent using a computer at home, NI & RoI, 2003 & 2005

The computer becomes increasingly communal

Figure 35: Main user of home computers, NI & RoI, 2003 & 2005

Computer lifecycle averaging between two and five years

Figure 36: Period at which home computer was obtained, NI & RoI, 2003 & 2005

THE FUTURE

Technological advances crucial in promoting growth

Biometrics ensuring future data security

Thin client technology

Longer battery life and smaller hard drives ensure portability

Multimedia computers are the future

Declining costs set to continue

Changes to distribution networks continue

Component distribution channel increasingly important

FORECAST

Figure 37: Forecast of PC market value by retail sales, by population (15-54) & PDI, NI & RoI, 2005-09

APPENDIX: RESEARCH METHODOLOGY