Personal Computer News


A Not So Merry Micro Christmas For Shops

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Published in Personal Computer News #092

A Not So Merry Micro Christmas For Shops

Christmas is coming, and the rumour is that the goose that laid the golden egg is about to get the cho.

There have been whispers that this could be the last bumper Christmas for the home micro. We put on out most sobre funeral clothes and spoke to a cross-section of retailers to see whether they're crying all the way to the bank.

"I think this may be the last Christmas in which computers will be sold in vast quantities as presents, which implies their use as games machines," said Michael Litvin of Computers of Wigmore St in London's West End. But Dave Gilbert, marketing manager of Dixons, disagreed: "We are not experiencing the demise of home computers."

Others held views somewhere in between these two. WHSmith's spokeswoman Jenny Wallace reported: "Sales are going quite well in all areas," but Boots computer group manager John Greengrass was almost reaching for the Kleenex: "We're a bit disappointed with the level of business - it's a late Christmas."

His comment will have the software suppliers nodding in agreement. Their sales, according to one software company, didn't start to take off until last week.

If you're buying later, you're also spending in different directions. Of the shops we spoke to, only Woolworth said that micros alone would account for most of their sales this year. The idea of the starter pack has caught on, and chains like Dixons are extending it with their own packaged offerings.

Litvin, despite his gloomy forecasts about home micros, has sales that are 35 per cent up on last year. Part is due to a change of premises, he says, and part to a change in buying patterns. "I'd say 50 per cent of the increase is due to peripherals - the number of printers and monitors we've sold has shot up."

In the past, Christmas has been a difficult time for manufacturers to get their supply act together. As a result some people ended up buying a computer because it was the only one left on the shelf.

The problem has still not been resolved. Both Boots and WHSmith grumbled about supply problems with the Spectrum Plus and Commodore 16. Greengrass said stoically: "Some manufacturers were late getting their machines out."

Litvin said: "It rather amuses me that manufacturers say that there are no shortages. The Spectrum Plus is in very short supply, Plus/4s aren't that abundant and C16s I'm not keeping. There isn't much software for the C16."

Even so, the shops have a slightly wider range of computers this year, more software and a host of add-ons to plug into a computer. What you see on the shelves it the survival of the fittest - there are no fire sales of things like the TI 99/4A this time around.

Opinions on individual systems varied. Dixons is euphoric about the Amstrad, but Litvin claims: "It was hyped up beyond recognition: I couldn't sell it." And on the QL, he added: "With respect to Sir Clive, he got his marketing wrong. I'd say 75 per cent of buyers are using the QL at home; I've been surprised how many people want it as a first machine."

With such a variety of opinions about the state of the market, there are, as you might expect, different ideas about how to persuade you to part with your money. WHSmith is offering credit facilities with repayment plans covering 12, 24 and 36 months. Boots is advertising "guaranteed" prices, most of which can be undercut by a quick scan through a micro paper. Dixons, as noted, is selling packages Litvin, without the buying power of a chain, is restricting himself to a modest price cut on some of the most reliable sellers in the software field.

"Obviously I can't remain completely uncompetitive," he said. "But you can't sell a Commodore 64, for example, at its recommended retail price (£229); you won't find anybody selling it at that price. Some are down to £183. There's no way I'm going to compete with the cowboys who're in for a quick buck because I intend to be here for many years to come, offering support."

When you've sorted out the contradictions it doesn't look as though home computers are on their way to any early grave. Even though the retailers give different accounts of what's happening, all retailers are reaping some rewards from micro sales.

But if what some of them are saying is anything to go by, the tail-end of Christmas into the New Year could see a shift to the buying of more add-ons and software rather than computers, and after that a slow down in sales of games machines.