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Article Title:
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ChangeWave Surveys Show Deteriorating Computer Purchasing Trends

Article Description:
====================

The economic downturn has taken a big bite out of personal
computer demand, according to two recent ChangeWave surveys on PC
buying among consumers and corporations. The results clearly show
deteriorating computer spending going forward.


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===============================

616 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-05-01 10:24:00

Written By: Paul Carton and Jim Woods
Copyright: 2008
Contact Email: mailto:agolub@...



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ChangeWave Surveys Show Deteriorating Computer Purchasing Trends
Copyright (c) 2008 Paul Carton and Jim Woods
Change Wave
http://www.changewave.com



U.S. consumers and businesses aren’t buying PCs like they used
to.

The economic downturn has taken a big bite out of personal
computer demand, according to two recent ChangeWave surveys on PC
buying among consumers and corporations. The results clearly show
deteriorating computer spending going forward.

Next 90 Days: PC’s Head South

Consumer Spending Trends: Only 8% of the 4,427 consumers surveyed
by ChangeWave in late February say they’ll be buying a laptop in
the next 90 days - down 3-percentage points since November 2007.
Most importantly, that’s a record low for consumer purchasing in
the past 12 months.

The same trend was found for desktop computer purchases, with
just 6% saying they’ll be buying a one - also a low for the year.

Business Spending Trends. In a double whammy, corporate PC buying
has also slowed precipitously. In February, only 73% of 2,204
corporate respondents said their company plans on buying laptops
in the next quarter - down 4-pts from a year ago. It’s the same
pattern for desktops, with corporate purchases down 5-pts.

But what impact, if any, is the PC slowdown having on major
manufacturers? Let’s look at three of the heavyweights:

Apple Mac Sales Remain Relatively Strong

Planned purchases of Apple (AAPL) computers remain relatively
strong even in the slower PC buying environment.

Looking at the next 90 days, Apple remains the leader among
consumers who plan to buy a laptop (31%) - down just 2-pts from
the all-time high recorded in our previous survey. Apple planned
desktop purchases (28%; down 1-pt) are also near record levels.

Importantly, Apple’s planned buying numbers are up more than 50%
from a year ago.

In the corporate market, planned Mac purchases for next quarter
are also at near record highs, with laptops (7%) unchanged from
previously and desktops (6%) down just 1-pt.

Most positively for Apple, the company continues to set the
standard for customer satisfaction among PC users. More than half
(53%) of corporate respondents using the Leopard operating system
report they are Very Satisfied.

This compares to a 40% Very Satisfied rating for Windows XP Pro
users, and a miniscule 8% Very Satisfied rating for Microsoft
Vista Business (8%).

Another Ebb for Dell

In contrast to Apple, we find a far different story with Dell
(DELL).

After experiencing a tiny uptick in planned consumer purchases of
Dell PCs in our previous survey, they are once again losing
traction going forward. Planned purchases of Dell laptops (28%;
down 2-pts) and especially desktops (32%; down 4-pts) are
considerably weaker than in our previous survey.

Dell is also plagued by a downturn in planned corporate PC buying
for next quarter, with desktop (32%; down 3-pts) and laptop (32%;
down 1-pt) purchases falling to new lows.

“It’s like déjà vu, all over again,” Yogi Berra famously said,
and that’s what it looks like as Dell once again resumes its
market share slide.

Weakening Hewlett-Packard Computer Sales

Another major player, Hewlett-Packard (HPQ), also exhibits weaker
PC sales going forward - led by a big drop in consumer planned
buying of desktops (18%; down 5-pts) and laptops (19%; down
2-pts).

In terms of corporate planned purchases, H-P also looks weaker
going forward, both for desktops (17%; down 1-pt) and laptops
(14%; down 2-pts).

Hewlett-Packard recently announced strong computer sales trends.
But almost 70% of its sales come from outside the U.S. - where
the current slowdown is likely having less of an impact - while
our ChangeWave surveys focus mainly on the U.S. market.

Indeed, outside the U.S., H-P registers higher market share
numbers for consumer desktops (22%), corporate desktops (20%) and
corporate laptops (17%).

Nonetheless, weaker U.S. visibility clearly looks to be an issue
for Hewlett-Packard going forward.




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The ChangeWave expert research network is composed of 15,000
highly qualified professionals. Members are surveyed weekly
on a range of topics, and ChangeWave converts the findings
into proprietary reports. For more ChangeWave GPS findings,
go to http://www.changewave.com/pcs To receive ChangeWave
technology alerts, go to http://investorplace.com/order/?pc=9PR724


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