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   MetaFacts, Inc.  /  Subscribe  /  Back Issues  /  Sales
Geographically Challenged? New Research Shows Sony PCs Limited To Fewest Metros Among Major PC Brands

Dan Ness, Principal Analyst, MetaFacts, February 24, 2004

 

New research finds that three of the major PC brands have a substantial share of their customers in only a handful of cities. According to the latest research report from MetaFacts – the Brand Profile Report – Sony, eMachines and Apple have more than a quarter of their Home PC installed base in 10 or fewer MSAs – Metropolitan Statistical Areas.

Why does this matter?

Although the three brands: Sony, eMachines and Apple, are distributed through national retailers and advertised nationwide, they are on the opposite end of the spectrum from HP/Compaq and Gateway in their actual national footprint. The results are based on 10,691 survey responses drawn from the largest, longest-running, technology census in the U.S. – Technology User Profile- and reported in the recently released Brand Profile Report.

Compared to the overall market, where nearly a quarter (24.7%) of Home PCs are used throughout 14 major cities, 25% of Sony’s installed base is concentrated in only half that many—fewest among the major brands. Even more concerning, 10% of Sony’s market is limited to just two metros; Los Angeles/Long Beach and New York. The eMachines brand, a relative newcomer to the market, is also geographically constrained with 10% of its customer base located in only three metros: Los Angeles/Long Beach, Atlanta and Riverside/San Bernardino. However, with its impending merger with Gateway, the combined installed base is much better diversified. Apple, on the other hand, which has been selling computers for over 20 years, has 10% of its user-base concentrated in only three MSA’s: Chicago, Los Angeles/Long Beach, and New York.


 

 

National Distribution of Home PC Installed Base


Source: MetaFacts, Inc. – Technology User Profile
 – 2004 Annual Edition

Is Sony’s limited geographic presence a benefit? Can it help Apple to be strongest in a few cities? Can it help eMachines to be so narrowly focused? Perhaps, for two of these three brands. For Sony & Apple, who primarily appeal to the socioeconomically elite and ultra-electronics-consumers, it might serve them best to focus only on those cities with the richest concentration of these buyer segments. Further, Sony and Apple are perhaps best situated to take advantage of the convergent marketplaces of computers and digital entertainment. Sony not only has a well established mind share in the consumer electronics field, but it is an innovative pioneer in pushing the entertainment capabilities that come standard in their VAIO series. Apple has taken a similar approach, continually inventing and redefining the definition of a personal computer with respect to home entertainment.

eMachines, on the other hand, can point to its relatively recent entry into the computer industry to explain that it has focused first on the few metros that have the channels and customers they have targeted. At the same time, two of eMachine’s top MSAs, Atlanta and Riverside/San Bernardino, although within the top 10 nationwide in number of home PCs, aren’t in the top 10% of any other major PC brand. So, eMachines has succeeded most in those metros big enough to be worthy, yet with relatively less competition.

In either case, for any of these three companies to grow their base beyond their favored territories will require some major changes in strategy.
 

Background & Methodology

Factual, decision-making information like this is only found in one place, the Technology User Profile from MetaFacts. The Technology User Profile market research information service is based on extensive primary research selected and balanced to represent the American population - including technology users and non-technology users. Drawn from more than 30,000 surveys per year reporting on over 250 questions, it is the longest-running, most comprehensive total market technology study available. TUPdates are brief summaries of information contained in the Technology User Profile.

 

Links to PDF Document

For a PDF copy of this TUPdate, please follow this link to the full document.

 

Links to Source Data

Current Technology User Profile subscribers may be interested in the following links with related, more detailed or updated information:
 

MSA Households

TUP 2003 Annual Edition (Excel)

TUP 2003 Annual Edition (pdf)

TUP 2002 Annual Edition (Excel)

TUP 2002 Annual Edition (pdf)

TUP 2001 Annual Edition (Excel)

TUP 2001 Annual Edition (pdf)

 

DMA\Designated Market Area (Households-Home/Family)

TUP 2003 Annual Edition (Excel)

TUP 2003 Annual Edition (pdf)

TUP 2002 Annual Edition (Excel)

TUP 2002 Annual Edition (pdf)

TUP 2001 Annual Edition (Excel)

TUP 2001 Annual Edition (pdf)

Geographic Division (Households-Home/Family) 

TUP 2003 Annual Edition (Excel)

TUP 2003 Annual Edition (pdf)

TUP 2002 Annual Edition (Excel)

TUP 2002 Annual Edition (pdf)

TUP 2001 Annual Edition (Excel)

TUP 2001 Annual Edition (pdf)

State (Households-Home/Family)

TUP 2003 Annual Edition (Excel)

TUP 2003 Annual Edition (pdf)

TUP 2002 Annual Edition (Excel)

TUP 2002 Annual Edition (pdf)

TUP 2001 Annual Edition (Excel)

TUP 2001 Annual Edition (pdf)

 
Links to TUP Online Store

If you are not a current Technology User Profile subscriber, and wish to obtain the source data or related information used in this TUPdate, please follow this link to the TUP Online Store.


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Usage Guidelines

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