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Study: 15% of Households Plan to Buy PCs

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From Bloomberg Business News

Dataquest Inc. said 15% of U.S. households plan to buy a personal computer within the next year, according to a study conducted by the market research firm.

More than half of those who plan to buy a PC earn less than $40,000 a year, Dataquest said, and 70% of those planning to replace their PCs or purchase a second machine earn more than $40,000.

“The distribution of those who own computers is rapidly driving into the lower income levels,” said Van Baker, director of demand-side research at Dataquest.

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Home computer buyers are one of the fastest growing markets in the personal computer industry as computer makers--including Compaq Computer Corp. and Packard Bell Electronics Inc.--continue to lower prices to attract retail buyers.

Entry level computers can be purchased for $1,000 to $1,500, depending on the amount of memory and the speed of the processor.

In fact, the strength of the home market could propel Packard Bell to the No. 1 position in the United States this year, ahead of Compaq, analysts at International Data Corp. have said.

The home buyer survey was conducted in conjunction with Nielsen Media Research and is based on about 10,000 surveys.

The worldwide market for PCs is expected to grow 22% this year to 57.1 million units shipped from 47 million units in 1994, according to market research firm IDC.

IDC said the release of Microsoft Corp.’s new Windows 95 operating system and high growth in the home and small business markets are driving the growth in the fourth quarter.

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For the longer term, demand for PCs will be driven by the increasing popularity of the global Internet and on-line services among consumers as well as new 3D graphics and data compression technology, IDC said.

The U.S. market will grow about 21% this year to 22.6 million units from 18.7 million units in 1994. For the fourth quarter, the U.S. market will increase 25% to 6.9 million units from 5.5 million units shipped in the year-ago quarter.

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