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Home Computers - US

Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: December 2007
Product Code: R560-3092
Description
As personal computers became more and more affordable in recent years, they were adopted by an increasingly large audience. Currently, over three-quarters of US households own a PC and with average PC prices well under $1000, the sector is fairly mature and well-saturated. In this report, Mintel delves into the home computer sector, analyzing key market drivers, trends, manufacturers and consumer attitudes. To offer recommendations on how industry players can succeed in this highly competitive, commoditized market, Mintel analyzes:
  • How broadband Internet access and advancements in computer technology have influenced home computer sales
  • The effect of an uncertain economy on the home computer market
  • Why industry leaders continue to shift despite the relative maturity of the home computer sector
  • How Americans research their home computer purchases, and what role the traditional brick-and-mortar store plays in the final decision
  • What consumers look for in a new home computer and how they use their computers at home
  • How industry players can adapt their product and marketing strategies to remain competitive in coming years
This Mintel report discusses sales of personal computers. The focus of the report is on the two largest segments of this industry, notebooks and desktops. The report builds upon Mintel’s previous study on home computers, Home Computers—US, October 2006
Table of Contents
SCOPE AND THEMES

What you need to know

Definition

Data

Abbreviations and terms

Terms

Target audience segmentation

EXECUTIVE SUMMARY

Falling prices result in limited growth

PCs learn to play

Changing platforms

Notebooks take the lead

Tough competition

The in-store experience as a research tool

PC specialists in trouble

Different apps for different folks

Carefully considered buying decisions

Service matters

MARKET DRIVERS

Summary of market drivers

The tail wagging the dog: Internet driving PC sales

Figure 1: U.S. households with home broadband and dial-up access, 2003-07

Wi-Fi growth important to laptop sales

The PC as a communications platform

Growth of entertainment and content creation applications

Figure 2: U.S. penetration of PC-related media technologies, 2005 and 2007

Continued price declines

Ad-supported applications to de-marginalize Linux OS

OS issues and the resurgence of Apple

Figure 3: Minimum System requirements for Major Operating Systems

Figure 4: Operating systems used, August 2007

Limited LCD supplies

Increased use of PCs for educational purposes

An uncertain economy

Recommendations

MARKET SIZE AND TRENDS

Figure 5: U.S. supplier sales of home computers, 2002-07

Figure 6: U.S. Unit sales and average price per unit, 2002-07

MARKET SEGMENTATION

Introduction

Figure 7: Sales of personal computers, by segment, 2005 and 2007

Notebook PCs

Figure 8: U.S. notebook PC sales, 2002-07

Figure 9: Average manufacturer’s sales price for laptops, 2002-07

Desktop PCs

Figure 10: U.S. desktop PC sales, 2002-07

Figure 11: U.S. desktop PC unit sales and pricing, 2002-06

SUPPLY STRUCTURE

Overview

Figure 12: PC unit shipments for business and CE, by supplier, 2004-07

Figure 13: Intent to purchase PCs, by brand, 2005 and 2007

Industry developments and trends

Battle of the titans

Marketing matters

Increased foreign competition

ADVERTISING AND PROMOTION

Introduction

Figure 14: U.S. media spending, by PC manufacturers and related brands, 2006

Print advertising and direct marketing

Television advertising

Apple

Figure 15: Television spot: Mac vs. PC, 2007

Dell

Figure 16: Television spot: Dell XPS M1330, 2007

HP

Figure 17: Television spot: HP pavilion DV-6000 notebook, 2007

Online advertising

Store promotions and discounts

RETAIL DISTRIBUTION

Overview

Figure 18: Stores where most recent PC purchase was made, 2003 and 2007

Changing channels

Figure 19: Leading PC sellers through non-store channels, 2005 and 2006

Computer stores hurting

Service sells

Niche players

PC OWNERSHIP, INTENT TO PURCHASE AND PRIMARY OS

Summary

PC ownership

Figure 20: PC ownership, by age, income, race/ethnicity, May 2006-June 2007

Laptops vs. desktops

Figure 21: Desktop and laptop PC ownership, 2003-07

Figure 22: Desktop and laptop PC ownership, by household income, 2007

Figure 23: Desktop and laptop PC ownership, by race/ethnicity, 2007

Multiple PC ownership

Figure 24: Number of PCs Owned, 2003 and 2007

Date of most recent purchase

Figure 25: Date of most recent PC purchase, 2003-07

Buying used

Intent to purchase

Figure 26: Intent to purchase a PC, by age, income, race/ethnicity and household size, May 2006-June 2007

OS platforms

Figure 27: Primary operating system used on notebook PC, by age, August 2007

Figure 28: Primary operating system used on desktop PC, by age, August 2007

HOW HOME PCS ARE USED

Summary

Use of Internet, gaming, digital photography, and telecommuting in non-Internet sampling

Figure 29: PC application usage by non-Internet sample, 2005 and 2007

Figure 30: Application usage by non-Internet sample, by age, May 2006-June 2007

Figure 31: Application usage by non-Internet sample, by household income, May 2006-June 2007

Figure 32: Application usage by non-Internet sample, by race/ethnicity, May 2006-June 2007

Comparison of usage between online and offline respondents

Figure 33: PC application usage, Internet and non-Internet samples, May 2006-June 2007 and August 2007

Usage: Internet vs. productivity vs. entertainment

Figure 34: Internet vs. productivity vs. entertainment, by age and income, August 2007

Multimedia application usage

Figure 35: Usage of multimedia applications on PCs, by age, August 2007

Figure 36: Usage of multimedia applications on PCs, by race/ethnicity, August 2007

Usage for productivity, communications, and Web content creation

Figure 37: Usage of various applications on PCs, by age, August 2007

Figure 38: Usage of various applications on PCs, by income, August 2007

THE PURCHASING PROCESS

Summary

Involvement in decision-making process for notebook purchase

Figure 39: Involvement in notebook PC purchasing decision, by gender and race/ethnicity, August 2007

The research process

Figure 40: Research conducted for laptop purchase, by gender, August 2007

Figure 41: Research conducted for laptop purchase, by income, August 2007

Factors considered in purchasing

Figure 42: PC purchasing factors, laptops and desktops, August 2007

Figure 43: PC purchasing factors for laptops, by age, August 2007

Figure 44: PC purchasing factors for laptops, by household income, August 2007

Purchase price

Figure 45: Average PC purchase price, 2003-07

Figure 46: Average PC purchase price, age, income, race/ethnicity and household size, May 2006-June 2007

Service and warranty

Figure 47: Service and warranty issues impacting PC purchase, by age, income and race/ethnicity, August 2007 60

FUTURE TRENDS AND FORECAST

The living room desktop and satellite laptops

Figure 48: Size and type of most recently purchased owned, 2002-06

PCs as lifestyle products

The PC as a cost-saving device

Continued price declines

It’s all about service

Non-PC PCs to compete with PCs

Breaking the size barrier

Growth of niche market PCs

MARKET FORECAST

Home computers

Figure 49: Forecast of total U.S. supplier sales of home computers, at current and constant prices, 2007-11

Notebook home computers

Figure 50: Forecast of U.S. supplier sales of notebook home computers, at current and constant prices, 2007-1165

Desktop home computers

Figure 51: Forecast of U.S. supplier sales of desktop home computers, at current and constant prices, 2007-11

Forecast factors

APPENDIX: TRADE ASSOCIATIONS

Ordering and More Information
Price and Delivery Options



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