Laptops driving surge of computer sales
The Consumer Electronics Show and MacWorld Conference were short on breakout products this year, but one sector that was surprisingly hot at both shows was laptop computers. It’s a category that produced strong sales last year and is promising even better results in 2008.
According to research firm IDC, computer sales rose 14.3% worldwide in 2007 to 269 million units and—at least in the United States—those gains were attributed to laptops. While U.S. desktop computer sales slumped 4% to 35 million units last year, laptop sales soared 21% to 31.6 million units and they’re on pace to eclipse desktop sales for the first time in 2008. And by 2011, the IDC estimates laptop sales will account for 71% of consumer sales compared to just 40% in 2006.
Analyst Andy Hargreaves with Pacific Crest Securities said there are several factors driving the surge in laptop sales. “Prices have fallen dramatically, so affordability is an obvious factor, and mobility is as well.”
Evidence of the growing popularity of laptops can be seen at Best Buy stores. Last year, the retailer rolled out small Apple Shops in 280 stores that stock a selection of Macs and other accessories. And in January, it added Dell to its lineup.
Dell, which used to be even more reticent than Apple when it came to selling its products at traditional retail, is also selling a select line of computers at Wal-Mart and is likely to expand into other retailers this year as it replaces storefronts lost by the collapse of chains like CompUSA. Dell is also struggling to regain its former position as the No. 1 computer maker since Hewlett-Packard overtook it.
According to research firm Gartner Inc., Hewlett-Packard held on to the top spot in 2007, capturing 18.2% of the PC market, compared to 14.3% for Dell. Gartner estimates HP sales were driven by a 30% increase in shipments of laptops, with desktop shipments increasing only 1.7%.
In 2008, laptop sales are going to determine who ends up on top, and there’s a bumper crop of new models already in stores, led by Apple’s MacBook Air notebook computer. The notebook, unveiled at MacWorld in January, is three-quarters-of-an-inch thick, weighs less than 3 pounds and sports an 80GB hard drive. The first units were expected in stores by the end of January at a price of $1,799.
Dell has countered with its new Inspiron T5450 line of laptop computers that come in seven different colors, feature built-in Web cams and start at $849. The new multicolored Dell line represents one factor that’s often overlooked in explaining the boom in laptop sales: good looks.
“Form is a big factor,” said Hargreaves. “Desktops are generally pretty ugly and bulky and most people prefer to have a laptop sitting on their desk at home.”