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DATAQUEST: “A THIRD OF U.S. HOMES WILL HAVE PC IN
1996”
For the personal computer to continue its long term
growth, it must expand its penetration in the home market. According
to market research firm Dataquest, a Gartner Group Company based in
San Jose, Calif., at the end of this year, 32.6% of all U.S. homes will
have a PC (see table).
On average, these household have 1.3 PCs says Dataquest. However, according
to Microsoft Corp. president Bill Gates, “we still have a long
way to go to make the PC an appliance.” And that is exactly what
the Redmond, Wash. software giant and PC makers are aiming to do.
This month, for example, Hewlett Packard Company of Palo Alto, Calif.
demonstrated a concept PC that is a home appliance at the Windows Hardware
Engineering Conference (WINHEC 1996) in San Jose, Calif. In addition,
on March 21, Gateway 2000 in North Sioux City, S.D introduced the Destination
big screen PC, a computer and television in one.
To achieve the goal of becoming a home appliance, the industry must
overcome some real hurdles. In his WINHEC, keynote speech Gates cited
a recent poll from the Massachusetts Institute of Technology. The Cambridge,
Mass. university asked the question: What invention could you live without?
“The PC clearly wasn't viewed as a required part of everyday life,”
says Gates. “We are down at 8%, that merely tied a blow dryer,
and was a little bit below the microwave oven.”
According to Frank Gens, a market analyst with International Data Corp.
of Framingham, Mass., one key factor to success in making the PC a consumer
appliance “is the development of product designs and cost structures
that allow for more consumer-friendly price points. Very few consumer
electronic devices have sold in large numbers at price points over $500.
Driving a multimedia PC entry price down to $500 from today’s
$1,500 is a tall order, but we believe that to tap into a broad base
of consumers, suppliers must at least drive below the $1,000 threshold
within the next several years.”
Microsoft's solution is the Simply Interactive PC. The SIPC technologies
will make the PC platform the center of entertainment, communications
and productivity in both home and office, providing the ease of use
and convenience of a consumer appliance, Gates Claims..
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U.S. Home PC Market
Forecast
Estimates (Thousands of Units) |
| |
1996 |
1997 |
1998 |
1999 |
| # Shipped |
7,946 |
7,998 |
7,814 |
8,409 |
| # Installed |
47,383 |
55,342 |
62,347 |
69,159 |
| % Growth |
7.6 |
0.7 |
-2.3 |
7.6 |
| % Installed |
32.6 |
34.9 |
36.3 |
37.7 |
| Source: Dataquest |
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