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Letter to the Editor

Letter to the Editor

Re: December 17 edition – Solid IT sales boost retailers’ Christmas confidence

A letter to the editor from Ray Shaw, Intermedia Group of Companies and Event Planners Australia

Re: December 17 edition – Solid IT sales boost retailers’ Christmas confidence

I think that the headline has a definitional problem. Ever since IT became part of CE flogged by franchise stores we have seen the category blurred. I have no doubt that the sale of Wii, Nintendo DS, games consoles, netbooks, MP3 and GPS units were solid i.e. if it was under $500 then the Christmas spirit prevailed.

But sales of traditional notebooks and desktops were woeful according to the at least six HN and JB Hi-FI in Queensland and NSW I visited pre/post Xmas.

One manager (at the Boxing Day sales) bemoaned that his storeroom had been packed to the rafters by head office with big ticket PC/notebooks in early December in anticipation of strong sales and he would have to return 95% of it in January because there was no interest in the $1000+ end of the market at the moment. SME sales were also non-existent in December he said.

Ingram Micro stock levels are a very good indicator of what was selling. For example in mid December (and even in early January) they had more than 3,500 ASUS 12-17” notebooks in stock and 1500 EeePC netbooks. They had thousands of Intel processors and Seagate hard disks available reflecting the very poor state of the white box market. Conversely they had backorders for more than 10,000 Tom Tom XL GPS units. (Source Techlink stock reports).

This bodes poorly for those specialist businesses that rely on sales of PC’s and notebooks – then again we have known for many years that box flogging can not be profitable and the cream comes from services and support.

Ray Shaw AMM, AFMEA, FPRIA, AJA, B.Bus Com. Intermedia Group of Companies and Event Planners Australia ray@im.com.au


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