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PC shoppers prove to have a fickle heart; most growth in sales goes to direct marketers

Article Abstract:

Home computer sales by direct marketers are estimated to have risen by 20 to 30% in the 4th qtr of 1996 compared to the same period in 1995. While overall home computer sales are reported to have grown by almost 15% in the 4th qtr, sales by traditional consumer electronics retailers have fallen 23%. This shift by consumers is due in part to the fact that approximately 65% of all home computers are sold to individuals who already own atleast one PC. Some analysts claim, however, that the trend towards direct marketing is temporary. These analysts believe that the introduction of innovative products featuring Intel's new multimedia chip as well as new satellite dishes will allow retailers to restore market share. Analysts also point out that retailers must diversify by providing training and service contracts to corporate and government enterprises in order to recover from narrowing profit margins.

Microcomputers, Marketing, Direct marketing, Market trend/market analysis, Market share, Distribution channels, Home Computer Market, Direct market channel

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Nerds' revenge: a how-to manual; Silicon Valley is paved with paper fortunes, and quick ways to enjoy them

Article Abstract:

Initial public offerings (IPO) turn Silicon Valley employees who hold stock in their companies into overnight millionaires who find ways to quickly turn stock into cash. In 1995, studies reveal that four of the top ten cities that had IPOs were in Silicon Valley. Mountain View and Sunnyvale, whose combined population is under 200,000, had 13 IPOs, more than New York City's 13. Of the 425 IPOs in the study, 31 came from four adjoining cities in Silicon Valley. Typically, the stock from an IPO is restricted both by the SEC and by the companies underwriting the IPO. The restrictions are designed to keep external investors on a par with internal investors. The SEC's curbs last for two years, but the regulatory body is considering shortening the holding period to one year. Still, banks in Silicon Valley are generally willing to make loans on cars and houses, using the restricted stock as collateral.

Usage, Compensation and benefits, Wages and salaries, Employee stock options, Salary, Stock

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Just drive a used PC off the lot and save

Article Abstract:

Purchasing used computers is becoming an increasing popular trend amongst start-ups and small businesses. There are several Web sites that match buyers and sellers of used computers, one of which is Onsale. Onsale auctions a varity of things, from household appliances and collectors items to Pentium-based computers. With sales of $4 million a month, Onsale is thought to be the biggest Internet seller of close-out and refurbished electronics. Onsale customers typically end up with merchandise that is one generation behind the current technology and with a savings of 20% to 30%. Another option is to trade in old equipment, and apply the credit toward a new purchase. First time buyers are encouraged to buy from a store, and not a used service like Onsale, unless they are aided by an experienced friend.

Purchasing, Equipment and supplies, Used computer equipment, Used computer hardware, Used Equipment, InterMall Inc.

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