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Geographically Challenged? New Research Shows Sony PCs Limited To Fewest
Metros Among Major PC Brands |
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Dan Ness, Principal Analyst,
MetaFacts, February 24, 2004 |
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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. |
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Why does this matter? |
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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. |
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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. |
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National Distribution of Home PC Installed Base

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Source: MetaFacts,
Inc. – Technology User Profile
– 2004 Annual
Edition
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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. |
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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. |
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In either case,
for any of these three companies to grow their base beyond their favored
territories will require some major changes in strategy.
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Background & Methodology |
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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. |
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