Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: March 2003
Product Code: R560-666Description This report looks at the UK retail market for laptop PCs (personal computers) and is the first time that Mintel has examined this market in isolation. Laptop PCs, once the preserve of the business user, are currently seeing an explosion in growth as average prices tumble and the specification of such units increases to levels close to those of desktop PCs. With the desktop PC market showing signs of maturity and experiencing a slowdown in demand, it is the laptop PC sector that is currently attracting most interest from manufacturers and retailers.
Innovation remains the key to driving sales forward. This has seen the launch of ever-lighter machines and the development of distinct segments within the market such as ultraportables and, more recently, tablet PCs. With brand awareness much higher within this market, there is much less evidence of the bundling tactics used by many desktop retailers. However, as with other sectors of the PC market, the preference for the use of direct sale by consumers continues to grow.
This report examines the hypothesis that: "progress made in the portability of computing technology makes laptop PCs the next major growth sector within the home computing market."
Table of Contents Introduction and Abbreviations
Definitions
Definitions
Abbreviations
Executive Summary
Technological developments and falling prices drive sales
Buoyant market holds out prospects for further growth
Few players account for the majority of sales
Shift towards direct sales and multiple retailers apparent within the market
Future looks healthy if consumer needs are properly understood
Market Drivers
An accepting consumer mindset
Figure 1: Agreement/disagreement with selected lifestyle statements, 1997 and 2002
Rising levels of PDI helping to boost expenditure
Figure 2: PDI and consumer expenditure, at constant 1997 prices, 1997-2006
Tumbling prices stimulate purchase
Working at home as driver of sales
The Internet and the mobile consumer
The influence of demographics
Figure 3: Trends and projections in total UK population, by age group, 1998-2007
Socio-economic changes also expected to be beneficial
Figure 4: UK population, by socio-economic group, 1998-2007
Household size - a more important factor in the future?
Figure 5: Indexed trends in household size, 1998-2007
Market Size and Trends
Technical improvements and falling prices boost sales
Figure 6: Estimated UK retail sales of laptop PCs, by volume and value, 1997-2002
Figure 7: Estimated indexed UK retail sales of laptop and desktop PCs, at current prices,
1997-2002
Falling average price helps to open up the market
Figure 8: Estimated average price per unit of laptop and desktop PCs, 1997-2002
Market Segmentation
Ultraportable models become increasingly popular
Figure 9: Estimated UK retail sales of laptop PCs, by type and value, 2000 and 2002
The tablet PC concept
Price - budget models dominate the market
Figure 10: Estimated UK retail sales of laptop PCs, by price point, 2000 and 2002
Processors: AMD and Intel - a close-run thing
Figure 11: Estimated UK retail sales of desktop PCs, by processor type, 2002
The Supply Structure
Consolidation and interest in major brands dominate market activity
Figure 12: Estimated manufacturer shares in the UK laptop PC market, by volume, 2000 and 2002
Companies and brands
Hewlett-Packard
Packard Bell
Toshiba
Dell
Sony
Acer
Time Computers
Other companies
New product development
Advertising and Promotion
Figure 13: Main monitored media advertising expenditure on personal laptop PCs, 1997-2002
Figure 14: Main monitored media advertising expenditure on laptop PCs, by ten highest-sepnding companies (2002), 2000 and 2002
Adspend concentrated among the big spenders
Retailers remain on the sidelines
Use of the national press dominates expenditure
Distribution
High street remains important in the face of selling direct
Figure 15: Estimated retailer value shares for total UK home PC market, 2000 and 2002
The Consumer
Penetration higher among men than women
Figure 16: Penetration of laptop PCs, by gender, 1999-2002
Respondents aged under 45 are important to the market...
Figure 17: Penetration of laptops, by age, 1999-2002
...as are ABs
Figure 18: Penetration of laptops, by socio-economic status, 1999-2002
Penetration is highest among Londoners
Figure 19: Penetration of laptops, by region, 1999-2002
No children and working full-time
Figure 20: Penetration of laptops, by presence of children in household and working status,
1999-2002
Figure 21: Penetration of laptop PCs, by household size, 1999-2002
Processor, memory and price important to future purchase
Figure 22: Features sought when next purchasing a laptop PC or equipment, 2002
Men more likely than women to seek specific features in future
Figure 23: Popular features sought when next purchasing a laptop PC or equipment, by
demographic sub-group, 2002
AB bias is again evident in the context of future purchase
Women likely to be concerned about weight
Figure 24: Other important features sought when purchasing a laptop PC or equipment, by demographic sub-group, 2002
The Future
Market set to expand further
Retail market set to evolve further
Demographic influences - hindrance or help?
Portability will be the key driver
Forecast
A vibrant market
Figure 25: Forecast of the UK retail market for laptops, 2002-07
Falling prices and innovation boost growth
Factors incorporated in the forecast
Appendix: Research methodology
Index of reports
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