Notebooks, LCDs Get Sales Edge

May 9th, 2007

U.S. retailers in May made more money selling
notebook
computers than they did selling desktops, according to sales
results from The NPD Group’s point-of-sale tracking service. It’s the first
time that notebooks have outsold desktops in the U.S.

In addition, Port Washington, New York-based NPD said unit sales of
flat-screen
LCD
monitors surpassed the sales of older-style tube-based CRTs for
the first time.

NPD said those milestones occurred as U.S. retailers selling computer
products posted their best year-over-year sales in nearly four years, jumping
13.6 percent over May 2002.

“It is fitting that these milestones should occur together, as they are
both important components in the increased movement of the PC out of the home
office and into everyday use,” said Stephen Baker, director of industry
analysis at NPD, in a statement. He said the key to the
increase in
sales was consumers’ desire for computing products that offer
portability and attractive designs at good prices.

“Selling prices fell below $1,300 for the first time ever, more than
$250 below May 2002, even while 80 percent of notebooks sported 15-inch screens
and 86 percent provided customers with a CD burner,” Baker said.

According to NPD, notebook computer sales volumes have been closing the
sales gap with desktop models during the past four years.

In January 2000, NPD said, notebooks represented less than 25 percent of
sales volume. By May of this year, notebooks represented 54 percent of the
nearly $500 million dollar in retail computer sales a month.

LCD sales volumes have been
steadily
rising since flat-panel screens became affordable for many
consumers approximately two years ago, NPD said.

Flat-panel monitors, which are more expensive than CRT monitors,
accounted for 52 percent of unit sales in May and more than 70 percent of sales
dollars, according to NPD. Those numbers are in stark contrast to figures in
May 2002, when unit volumes were only 22 percent of total monitor sales and
revenue for LCDs was only 40 percent of the total.

“LCDs’ slim profile and sleek looks are more appealing and more
‘home-electronics’ looking than the bulky CRTs traditionally sold with PCs,”
Baker said.

He said consumers were willing to spend more money to buy LCDs. Baker
said the average LCD price was $467, compared with the average CRT price of
$250.

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