Sales Up For Cameras, Plasma TVs, Music Players - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Hardware & Infrastructure

Sales Up For Cameras, Plasma TVs, Music Players

A lack of consumer excitement over the desktop leads to weaker-than-expected sales.

Dazzled by all the new digital gadgets, holiday shoppers are expected to buy up cameras, plasma TVs, music players and other consumer devices, rather than replace the old PC that many see as good enough, a market researcher said Monday.

Worldwide PC shipments are expected to reach 51.9 million units in the fourth quarter, a 10.1 percent jump from the same period a year ago, Gartner Inc. said. The figures, however, reflect healthy sales in the professional market, while home sales are weaker than expected because of competition from digital entertainment products.

"(Buying entertainment gadgets) is simply more exciting than replacing PCs," Gartner analyst Kiyomi Yamada said. "If you're going from a desktop to a notebook then that's kind of exciting, but other than mobility, we haven't seen many new functions in PCs. In other words, there's no must-have."

Many computer makers, such as Dell Inc. and Hewlett-Packard Co., have seen the trend coming and are offering music players, TVs and cameras, which carry higher profit margins than PCs.

"Everyone recognizes that this is going on, and are trying to play on both sides of the street," Gartner analyst George Shiffler said.

For the whole year, Gartner projects PC shipments to reach 182.7 million units, an 11.4 percent increase over 2003. The forecast, however, is less than Gartner's earlier projection of 13 percent growth, which was revised downward because of less-than-expected shipments in the home market in the third quarter, and the prospect of weaker sales during the holiday season.

Because digital cameras, music players and other devices are used with the PC, the more gadgets sold could lead to an increase in PC upgrades in the near future, Shiffler said.

Long term, however, it's unclear whether digital entertainment devices, such as video recorders like TiVo and plasma TVs, will substitute PCs as they take on more PC-like functions. On the other hand, it's unclear how successful PCs will be at becoming the central store for pictures, video and music.

"The PC has shown itself to be pretty flexible, so I wouldn't rule it out," Shiffler said.

But for now, it's hard to see people paying bills and reading personal email on the family TV, while it's equally difficult to imagine people gathered around the PC to watch their favorite cable program.

"The PC does face certain challenges as an entertainment device, just as entertainment devices face challenges in information processing," Shiffler said.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll