Computer market share and more
With laptop computers quickly taking away computer market share from the desktop market sales of the portable computers is expected to increase in 2004 while advertising for the products is expected to decrease 11.3% to $125 million in 2004. Indeed, the laptop computer market share is expected to grow indefinitely on into the future.
The top five manufacturers Dell, Round Rock, Texas; Hewlett-Packard, Palo Alto, California., Toshiba, Tokyo; IBM, Armonk, New Yorkl and Sony, Tokyo, account for 80.7% of the market. The manufacturer combined for $13.0 billion in revenues and $130.4 million in ad spending in 2002.
Three of the companies are expected to decrease their advertising in 2003 bring the total estimated ad spend by the group to $114.7 million, a decrease of 12.0% According to technology research firm IDC, Framingham, Massachusetts., the laptop computer market was roughly $16.1 billion in 2002 and will remain relatively flat in 2003.
PC market research analysts contend laptop computers are becoming more popular with consumers due to falling price points and increased capabilities that put them on par with their desktop counterparts. However, historically most consumers are drawn toward the cheaper, heavier laptops, which typically weigh around 7 pounds and have battery lives that only last between 1-2 hours.
These laptops are typically being moved from room to room in someone’s home and are not being carted around everywhere like the higher priced models. But, there has been some noticeable movement, as far as computer market share is concerned, towards consumers seeking out smaller and more light weight units.
Dell is the leading laptop maker with estimated 2004 revenues of nearly $10 billion. It spent $69.8 million on advertising its best selling Insprion laptops. Dell’s currently running a promotion that prices its Insprions from $499 to $1,100. The laptops are also feature along with other Dell products in its current "Interns" ad campaign created by BBDO Worldwide, New York. Due to its leading position in the market and its strong brand recognition TABR estimates the company will decrease its ad spending to $68.0 million in 2004.
Hewlett-Packard is expected to increase its 2003 ad spending 62.0% to $17.5 million. HP has been aggressive spending on advertising in the first half of this year. HP also already spent just over $4.3 million on advertising for its laptops according at data from ad tracking firm Competitive Media Reporting, New York.
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