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Looking to provide some information about the upcoming
holiday season’s sales trend, Change Wave Research released a report on
consumer spending.
The survey includes the opinions of 3,699 consumers and the
data was collected between October 23 and November 3. The general conclusion is
that the country is about to experience a “massive
breakdown in consumer spending,” which will have a great impact on all
retailers.
Only 8 percent of people questioned stated that they plan to
buy a laptop over the next 90 days, down from last year’s 11 percent, while 6
percent plan to buy a desktop machine, two points lower than last year’s
estimates.
“It’s not easy to increase market
share in one of the worst spending environments in years,” stated research
director Paul Carton.
Even though the general sales
trend appears rather dark, there are two companies which are actually looking
forward to the holiday season. Apple and Dell came out looking very good, with
increasing figures. Apple attracted one third of the people interested in
buying a laptop over the next three months. 7 percent of the people interviewed
said they intend to acquire an aluminum Apple laptop, while another 6 percent expressed
their interest in the old plastic MacBooks available for $999.
Mr. Carton addressed Dell
evolution: “Something quite unusual is happening with Dell. For the first
time in nearly three years, Dell consumer planned purchases look positively
upbeat.” The company grew 11 points, reaching 37 percent. In his opinion, the
explanation is simple: the company offers the right features, customizable
configuration and also good reviews. Still, he explained that the results can
be interpreted in different manners: “Importantly, consumer purchases represent
less than 20% of Dell’s overall PC revenue, with the vast bulk of it coming
from the corporate side — where the IT spending pullback during 2008 has had a
brutal impact on Dell and other PC manufacturers. Moreover, there are no signs
that the overall PC market will be improving at any point in the near future.
Rather, the recession continues to pick up steam,” he said.
These fluctuations are directly linked to the U.S. economy
and the poll notes that 59 percent of the country’s consumers plan to spend
less in the next 90 days than they did in the last few months, while only 10
percent stated that they plan to spend more, recording a drop of over 18
percent from September’s estimates.
The tough holiday season will surely also affect the two
market leaders and Mr. Carton explained it very well: even though Apple and
Dell appear to be supported by solid demands, things must be analyzed in
perspective, as "They're in a diminishing pie overall," and even
though they will battle out for the first two positions, the revenue is
expected to be significantly smaller than during the same period of last year.
The conclusion reached by Mr. Carton is simple – it will be a real challenge to
increase the market share in one of the worst spending environments recorded in
years.
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