Sales & Marketing
Training & Development
PCs & Servers
Imaging & Printing
Local IT reseller sees slow sales during Xmas
Jan 8, 2009 2:21 PM
IT reseller PC Market has had a pretty quiet Christmas. It found customers were interested in forking out for a netbook, rather than a notebook.
Ming Wei, co-owner of the NSW-based IT retail store, said sales this year were a lot slower than last year and previous years.
In an exclusive interview with
, Wei said the business was open during the Christmas holidays, but received only a small amount of orders.
“We found that people were slowly ordering in notebooks. However this year saw a huge number of orders for netbooks, like Asus’ Eee PC, MSI’s Wind and Acer’s Aspire One,” he said.
“People don’t mind paying for a $500 machine, compared to a higher-end model at $3000-$4000.”
Wei claimed the netbooks have been selling well, since the arrival of the Eee PC, during 2008. However sales for higher end notebooks are almost non-existent.
“We are selling more lower-end machines, but not too much higher-end notebooks,” Wei said.
“I would rather see higher sales because there’s better margin.
“People aren’t willing to fork out a lot of money for a notebook, especially with the introduction of netbooks because people can surf the internet and check their email. It’s not a superfast computer but it's good enough.”
According to Wei, with cheaper gaming consoles and PC games now available on machines like Nintendo’s Wii, gaming computers were also hard to sell.
“It’s cheaper for some people to buy a gaming console rather than purchase a full a clone at around $4000-$5000,” he said.
However consumer electronic retailers fared a bit better with their sales figures during this Christmas season, claimed Wei.
“I have a feeling consumer retailers discounted a lot of things and sold products really cheaply because they wanted to get rid of things,” he said.
“At the end of the day they sacrificed margin to save on turn over. Who really
benefits from such a move?”
As for what’s coming up in the new year, Wei is a bit more optimistic about sales in 2009 as rumours swirl about Windows 7 being released towards the end of the year.
The trend during 2008 was for customers to downgrade their machines from Windows Vista to XP.
However Wei said he and his staff were convincing customers not to do that anymore.
“We are trying to convince people not to downgrade mainly because of driver issues,” he said.
“There’s no point in downgrading to XP because there are a lot more products supporting Vista coming out and there will be hassles with compatibility issues.
“There are less and less of those customers making that requesting them, most of them are now keeping to Vista.”
He said customers will be more receptive to moving away from XP when Windows 7 is released.
Wei is hopeful about the new operating system.
“Whenever you get a new operating system coming out you see a growth in sales.
“But then again, they say this year – but you never know with Microsoft,” he said.
Follow us on
Windows is dead, long live Windows
AMD cuts revenue estimate, citing weak PC sales
PC sales to suffer as software soars in Australia: Gartner
Head-to-head: Dell XPS 13 vs MacBook Pro 13
Microsoft boss Pip Marlow joins Australian Rugby Union board
Toshiba loss to blow out to $8.5bn
Symantec gets $700m from firm that took Dell private
Ever wonder how inkjet cartridges are made?
Here's how HP tests all those ink catridges
Send us your tips
You must be a registered member of CRN to post a comment.
Click here to login
Click here to register
Criminals impersonate Arrow exec to steal $18 million
Distie discovers fraud in January.
M2-Vocus merger gets final blessing for completion
M2 shares to stop trading Monday.
IT provider Vintek boosts data centre firepower with Intervolve acquisition
Aims to be a data centre market leader.
Sign up to receive CRN email bulletins
Microsoft overhauls Enterprise Agreements in licensing shakeup
Exclusive: Hewlett Packard Enterprise reviews Australian distribution
AFP raids Gold Coast reseller for peddling counterfeits
3200 Dick Smith staff may have been underpaid
Hewlett Packard Enterprise loses Aussie channel chief
Powered by Disqus
Does the ATO need to close tax loopholes?
view previous polls »
Powered by Disqus
CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.
What's in this issue?
Most popular tech stories
7 accounting packages for Australian small businesses compared: including MYOB, QuickBooks Online, Reckon, Xero
Cheaper tax returns thanks to Xero?
Tip: Your shop can use a smartphone instead of an EFTPOS terminal
Do you know these 12 eBay tips?
Do you use Dropbox? Here are some clever tricks
Photos: The CIO movements that made headlines in 2015
Former NAB exec to lead billion-dollar Centrelink IT overhaul
Photos: The old technology lurking in Australia's cupboards
Westfield ditches SMS feature over privacy issues
Microsoft makes big change to enterprise agreements
How to: How much RAM do you really need?
Top 25 fantasy games of all time
Playing politics in the Australian games industry
Top 15 obscure video game consoles for collectors
What is the dark web?
5 reasons why The Division will be best played on PC
Star Wars original trilogy heroes and villains
20 key tips for succeeding at Rainbow Six Siege
Review: Assassin’s Creed Syndicate
Asus' new gaming house, and gaming gear
PC & Tech Authority
nextmedia Pty Ltd
. All rights reserved. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation.
Your use of this website constitutes acceptance of nextmedia's
Terms & Conditions
Login to CRN
Email or Username:
* Email or Username required
* Password required
Forgot your password?
Don't have an account? Register now!
To request a
, enter the email address linked to your CRN account and we'll send one to you.
* Email required
* Invalid Email address
* Invalid Email address
Click here to return to Login Form
comments powered by Disqus.