NPD Reports Consumer Computing Product Sales Surpass $47 Billion for 2002

PORT WASHINGTON, NEW YORK, March 5, 2003 - U.S. sales of consumer computing products were $47.7 billion in 2002, according to year-end numbers released by The NPD Group.

Sales growth in the consumer computing products sector, which includes all PC-related products except software, were hard to come by during 2002. For the second half of 2002, consumer computing products sales rose only 2.6 percent to $26.5 billion. Sales through multi-vendor outlets (such as retail stores, Web sites and catalogs) were up 3.3 percent during that period and accounted for 65.2 percent of sales volume while manufacturer-direct sales rose only 1.3 percent. The manufacturer-direct channel includes companies that sell branded products direct to the consumers, such as Dell and Gateway.

Year-over-Year Sales for Consumer Channels for Second Half 2002



Market Share








Manufacturer-Direct (i.e., Dell, Gateway)

$8.8 billion

$8.9 billion





$16.2 billion

$16.7 billion





$25 billion

$25.6 billion




Source: The NPD Group/NPD Techworld

"Reports of the demise of brick-and-mortar retailing, in the personal computing category were greatly exaggerated," said Stephen Baker, director, The NPD Group. "Retail sales outlets were able to leverage the ability to offer a wide selection of brands and product categories. This enabled them to take advantage of the sales opportunities in higher growth categories such as consumables, to generate overall faster growth than the manufacturer-direct channel."

In the manufacturer-direct channel, PC sales remained the driver with almost 85 percent of all sales coming from desktops and notebooks. This is down from 90 percent in the second half of 2001. Sales volumes for desktops fell by 7 percent year-over-year while notebook sales rose 3.5 percent.

"Slowing growth in the manufacturer-direct channel for the second half of 2002 shows how dependent this channel has been on driving sales through the PC category," said Baker. "Undoubtedly, Dell's printer strategy and Gateway's foray into plasma TVs are designed as ways that they can expand their expertise as retailers into new, higher growth sales opportunities."

To compile these results, The NPD Group utilized its online consumer panel, the largest online consumer panel providing ongoing tracking services across a broad range of industries. The panel is comprised of 600,000 individuals who have agreed to provide information on their purchasing.

About The NPD Group, Inc.

The NPD Group, Inc. (NPD) is a global market information company that measures product movement and consumer behavior across a broad range of industries -- apparel, automotive products, consumer electronics, cosmetics and fragrances, food, foodservice, footwear, housewares, information technology, interactive entertainment, toys and music. NPD's clients, many in the Fortune 500, use this insight to uncover market opportunities, strengthen channel relationships and

benchmark industry performance. Since 1967, NPD has introduced numerous industry firsts, most recently combining and calibrating information from consumer panels and point-of-sale tracking via its flagship services, the NPD Worlds. The firm has offices and affiliations in 60 countries. For more information on The NPD Group, visit

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Jarad J. Smith

Sean P. Dolan