PORT WASHINGTON, NY, January 25, 2001 – Leading marketing information provider NPD INTELECTÒ Market Tracking today reported annual sales figures for many computer and consumer electronics categories. Sales for a group of 45 computer-related categories tracked by NPD INTELECT rose 14.1% in unit terms, but fell 6.3% in dollars in year 2000, compared to 1999. Sales for a group of 47 consumer electronics categories rose 7.1% in unit terms and 5.1% in dollars.

Overall, unit sales of computer-related products continued to increase throughout 2000 in spite of several categories that were in steep decline, particularly desktop PCs, which dropped 17.6% in units. Percent change over the four quarters, compared to those in 1999, showed a sequential decline in unit growth. Overall, technology sales in first quarter 2000 increased 19.4% in unit terms compared to first quarter 1999. By the fourth quarter 2000, technology sales increases slowed to 9% in units, compared to fourth quarter 1999, 10.4% less growth than first quarter 2000. Notably, revenues turned negative beginning in the second quarter, plunging further as the year continued.

Computer-Related Categories – Quarterly Percent Change – 1999 vs. 2000

In the consumer electronics segment, sales followed the same trajectory, though without the negative revenue consequences. While unit sales of consumer electronics increased though each quarter of 2000, the first half of the year was significantly stronger than the second half, in both unit and dollar terms.

Consumer Electronics Categories – Quarterly Percent Change – 1999 vs. 2000

NPD INTELECT Director of Consumer Electronics Jim Hirschberg commented, "The softening economy is clearly evident in the numbers for both computer-related and consumer electronics products. Still, in both groups of products there were bright spots. This is a time when hot new digital products are attractive to consumers in spite of their concerns over the economy. From PDAs to portable DVD players, digital categories tended to fare well all year long."

According to NPD INTELECT Market Tracking, some of the fastest growing computer-related categories in year 2000 were home networking products (300%), PDAs (161%), and CD recordable drives (83.2%). Some key categories that decreased in unit sales beyond desktop PCs, as mentioned earlier, include monitors (-7%), notebooks (-1.6%), and printers (-1.1%).

Overall, year 2000 saw more sales excitement among consumer electronics products than among computer-related products. For example, there was vigorous growth for DVD players (108.3)%, home CD recorders (70.3%), direct broadcast satellite (57.6%), in-dash CD players (42.6%), and home theater-in-a-box systems (37.9%).