For Immediate Release
For more information:

Sarah Bogaty
The NPD Group, Inc.
+1 516 625 2357
sarah.bogaty@npd.com

The NPD Group, Inc.
900 West Shore Road
Port Washington, NY 11050

Sales to U.S. Small and Medium Businesses Pick Up for First Time

December Sales First Month of Positive Growth

PORT WASHINGTON, NEW YORK, JANUARY 28, 2010 - U.S. sales through commercial resellers were up 7 percent in December 2009 reaching $1.6 billion, the first and only year-over-year revenue gains in 2009, and yet another sign that technology sales are on the rebound, according to leading marketing research company, The NPD Group’s Reseller Tracking Service.

Sales through this channel, which primarily serves small and medium size businesses, had been gradually improving since September, with October marking the first month in 2009 with less than double-digit revenue declines.  December’s positive sales results were the first monthly revenue increase since the summer of 2008, illustrating how closely business demand for IT mirrored the downturn in the economy.   

Commercial reseller sales for all of 2009 plunged 12 percent year-over-year, ending the year at $16.3 billion. Flat fourth quarter sales were not sufficient to offset the three prior quarters of mid-teen rates-of- decline. But the substantial improvement in trend bodes well for 2010 when stronger demand and weak comparisons ought to help keep spending trends positive.  .

“The favorable revenue trends in the fourth quarter culminating in positive December growth bode well for recovery in 2010,” said Stephen Baker, vice president of industry analysis at NPD.  “With revenue growth coming as much from stable ASPs as from unit growth, SMBs are likely still buying on need.  But, having key metrics such as units and ASP trending positively across multiple categories provides a solid underpinning for growth in 2010. December server results are a great example of how even though unit demand may be weak, strong ASPs are helping to keep almost all of the key product segments in positive territory.”

Key Revenue Growth Categories for December 2009
  Revenue % Change December 2009 vs. December 2008 Unit % Change December 2009 vs. December 2008 Average Selling Price December 2009 Average Selling Price % Change December 2009 vs. December 2008
Notebook Computers 13% 42% $920 -21%
Networking Devices 4% -1% $599 5%
Desktop Computers 40% 30% $678 8%
Storage Hardware 8% 3% $221 5%
Monitors 11% 20% $175 -8%
Servers 8% -4% $3,086 13%
Printers 4% 2% $432 2%

Source: The NPD Group/Reseller Tracking Service

For more insight about the commercial reseller channel read Stephen Baker's blog post.

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About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,700 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/ and http://www.npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.