Australian PC Industry Remains Bullish Despite Global Economic Woes

Strategic Insights -

The Australian PC industry appears immune to the global economic downturn, with analysts and industry watchers predicting continued growth and confidence among retailers. Despite chip companies Intel, AMD, and Motorola warning of revenue declines and Compaq announcing a dip in profits, Australian PC manufacturers and retailers remain optimistic. Intel's strong sales growth in Australia, coupled with the prediction of a 10-15% growth in the Australian PC market by Gartner Group senior industry analyst Bruce McCabe, suggests that the Australian market is bucking the global trend.

Key Takeaways:

  • Despite global industry troubles, Intel Australia is experiencing approximately 15% sales growth over the same period last quarter.
  • Gartner Group senior industry analyst Bruce McCabe predicts a 10-15% growth in the Australian PC market this year, with a slight downward revision due to the Asian currency crisis problems.
  • PC retailer Harris Technology's managing director, Ron Harris, reports that the past three months have been the best the company has experienced, and he expects this situation to last throughout the remainder of the year.
  • Gateway 2000, a direct selling PC manufacturer, is also confident of a strong year, citing the company's ability to respond quickly to changing market demands due to its tight inventory management.
  • Compaq's shares dipped due to concerns about carrying too much inventory, but the company is working to reduce lead times and be more responsive to changes in demand.

Statistics:

  • Intel Australia expects revenue for the first quarter of 1998 to be down around 10% from the fourth quarter 1997 revenue of $US6.5 billion.
  • Intel Australia's 15% sales growth over the same period last quarter.
  • Gartner Group predicts a 10-15% growth in the Australian PC market this year.
  • Harris Technology has reported a significant increase in sales over the past three months.
  • Gateway 2000 holds only two weeks of parts inventory, allowing for quick response to changing market demands.

Sources:

  • The Australian article by Ian Grayson
  • Intel Australia general manager David Bolt's statement
  • Gartner Group senior industry analyst Bruce McCabe's quote
  • PC retailer Harris Technology's managing director, Ron Harris's statement
  • Gateway 2000 manager Michelle Vanzella's quote
  • Compaq's announcement of reduced profits
  • Motorola's statement regarding the Asian economic problems.