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Facts Figures and Findings

60 Million DVD-Video Players to Sell in 2004

Already the fastest growing consumer electronics product in history, DVD sales will reach new heights over the next several years, according to the Cahners In-Stat Group. In-Stat predicts that 28 million DVD players will be shipped worldwide in 2001 (since their introduction in 1996) and will exceed 60 million units in 2004. New features such as DVD-Audio, component integration leading to lower prices, and new products incorporating DVD technology such as TV/DVDs and DVD mini-systems all point to rapid market growth-a 48% increase in U.S. shipments in 2001 alone. More products will enter the DVD recorder market in 2001. In-Stat also predicts that DVD recorders using the DVD-RW and DVD+RW formats will finally make their bow in the U.S. and Europe. Price will be the determining factor in unit shipments, according to In-Stat. Though recorders will be available for less than $1000 by the end of 2001, In-Stat predicts that unit shipments will not reach the millions until prices fall below $500.


Storage Spending Rises at Servers' Expense

Market researcher Meta Group says the ebusiness-driven demand for information storage, particularly in the networked storage arena, means increased storage spending of up to 30% this year. According to an article from The451, Meta predicts that tighter IT budgets will have a major impact on server infrastructure, but not on storage, since companies will find it easier to purchase additional storage rather than upgrade servers to handle greater workloads.


U.S. Personal Computer Sales Down

In January, retail sales of desktop PCs plummeted 26% in units and 28% in dollars compared with the same period last year, according to market researcher PC Data. Notebooks fared a bit better, with sales down 9% in units but only 6% in dollars. Apple Computer and eMachines Inc. took the biggest hits in January, with sales down 60% and 50%, respectively, year over year. Compaq Computer saw a modest 5% decline, while Hewlett-Packard's sales dropped 17%. Compaq Computer recaptured the retail store lead from Hewlett-Packard, with 45% market share compared with its rival's 39%. In December, the situation was nearly a mirror image to January: HP had a 44% share, compared with Compaq's 36%. The average selling price fell 4% year over year to $850, but rose 3% from December's $827. The change in selling prices comes as the sub-$1000 market continues its decline and consumers crave PCs with more features. PC Data reported that sub-$1000 PCs in January accounted for 64% of retail sales, the lowest since February 1999. However, higher-priced computer sales are relatively strong. For the second month in a row, PCs priced between $1000 and $1500 made up about one-third of the retail market, with unit sales up 65% from the same period last year. But the average selling price dropped to $1050 from an average of about $1250 over the last few months, according to PC Data.


Personal Computer Sales Strong in Asian-Pacific Market

The Asia-Pacific personal computer market grew by 30% in 2000, with unit shipments reaching 17.3 million, according to Dataquest Inc. Market growth was 15% in the fourth quarter of 2000, a figure which could have been higher if not for the impact of external economic factors, according to Gartner Dataquest analysts. U.S. currency exchange rate was one of the contributing factors dragging down growth, according to Garner. IBM-the leading vendor in 1999-grew 28% in 2000 but fell to third. Enthusiasm about new leadership drove its shipments to over 1.8 million units in 2000, an increase of 89% over 1999. Samsung and TriGem were the other top-tier vendors, outstripping average industry growth with increases of 87% and 100% respectively. Asia-Pacific countries posting strong growth rates and market share increases over the past year were China, Korea, India, Indonesia, and Thailand. China, leading in terms of sales, grew 33% with shipments of 6.6 million units. Following behind was Korea, which recorded a 76% growth and shipments of 3.6 million units in 2000.


Compiled by Michelle Manafy (michellem@onlineinc.com).

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