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Computer industry

Retail Desktop PC Sales Surge in June

Strategic Insights

— 2 min read

Retail desktop PC sales experienced a significant rebound in June 1998, driven by the release of Windows 98 and strong sales performance from Compaq. After a lackluster May, unit sales increased by 21.5% compared to the same period in 1997, with Compaq regaining its position as the market leader. The average selling price of Windows-based PCs continued to decline, reaching a new low of $1,123, a 20% drop from the previous year. This trend of decreasing prices is expected to continue, with sub-$1000 PCs accounting for over 43% of the retail market.

Key Takeaways:

  • Retail desktop PC sales increased by 21.5% in June 1998 compared to the same period in 1997, with unit sales reaching 37% higher than in May 1998.
  • Compaq regained its position as the market leader in June, with a 25.4% market share, thanks to a 45% growth in unit sales over June 1997 and an 81% increase over May.
  • Windows 98 played a crucial role in accelerating PC sales, with 29% of all Windows-based PC sales in June featuring Windows 98 preloaded.
  • Average prices for Windows-based PCs declined by 20% to $1,123 in June, marking the second consecutive month of price decreases.
  • Compaq has been the market leader for ten out of the past twelve months, with Hewlett-Packard slipping to third place in June.
  • IBM finished second in June, with its sales propelled by the success of PCs based on AMD processors, which accounted for almost 60% of its total unit volume.
  • AMD maintained a strong performance, with its products accounting for 26.2% of retail sales in June.
  • The AMD K-6 processor powered nine of the top twelve best-selling PCs in June.
  • PCs based on Pentium II processors remained the most expensive, with an average price of $1,520.

Statistics:

  • 21.5% increase in retail desktop PC sales in June 1998 compared to June 1997
  • 45% growth in Compaq's unit sales over June 1997
  • 81% increase in Compaq's unit sales over May 1998
  • 20% decline in average prices for Windows-based PCs in June compared to June 1997
  • $1,123: average price of Windows-based PCs in June
  • 25.4% market share for Compaq in June
  • 29% of all Windows-based PC sales in June featuring Windows 98 preloaded
  • 60% of IBM's total unit volume accounted for by AMD processors
  • 26.2% of retail sales in June accounted for by AMD products
  • 45% of the sub-$1000 segment accounted for by PCs with a K-6 processor
  • 40% higher price for Pentium II PCs compared to Celeron and AMD K6-2 PCs
  • $1,520: average price of Pentium II PCs
  • $1,079: average price of Celeron and AMD K6-2 PCs

Sources:

  • PC Data's June Retail Hardware Report
  • Stephen Baker, Senior Hardware Analyst at PC Data
  • PC Data's web site: http://www.pcdata.com
  • PC Data's phone number: 703-435-1025

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