PC Vendors Get Thumbs-Up In Consumer Electronics

The Stamford, Conn.-based market research firm, which polled 500 U.S. consumers earlier this month, found that PC vendors such as Apple, Dell Computer, Gateway and Hewlett-Packard are increasingly being seen as attractive alternatives to traditional consumer-electronics manufacturers for purchases such as digital cameras, DVD/CD/MP3 players, cell phones, advanced displays and televisions, and home theater equipment. More than half of the respondents (55 percent) said they're aware that PC companies now offer mainstream consumer-electronics products.

Among the survey's key findings were the following:

* Regarding technology purchases expected for the coming year, 30 percent of consumers favor PC vendors for a digital camera, 28 percent favor them for a digital camcorder and 38 percent favor them for an MP3 player.

* Although consumers still favor traditional consumer-electronics manufacturers by a wide margin on the audio/video front, 21 percent of respondents said they'll look to PC companies for a home theater system, 18 percent would do so for a satellite TV receiver and 17 percent would turn to computer vendors for a plasma TV.

* At the same time, PC makers remain the primary source for traditional IT products. Of purchases planned over the next year, 69 percent of consumers favor PC vendors for buying a printer, and 68 percent favor them for a PDA.

Respondents favoring computer makers for upcoming consumer-electronics purchases cited computer compatibility (47 percent), the belief that PC companies make great products (31 percent), overall convenience (31 percent) and advanced product features/capabilities (26 percent) as the key reasons. In addition, the consumers polled rated PC manufacturers higher than consumer-electronics companies in device compatibility, advanced technology, support, features, quality and price.

For purchases planned over the coming year, consumers named HP as the preferred PC manufacturer for printers, PDAs, digital cameras/camcorders, home theater systems and plasma TVs. Dell finished No. 2 in all of those categories except plasma TVs, where Gateway came in second. Dell was cited as the preferred PC manufacturer for MP3 players, with Apple finishing second in that category. Gateway held the No. 1 spot among PC makers in satellite TV receivers.

InsightExpress said the survey shows that computer manufacturers have a huge opportunity to produce and sell consumer-electronics products that connect to a PC, such as PDAs, MP3 players and digital cameras. And because many potential customers don't necessarily prefer consumer-electronics vendors for their home technology purchases, PC makers also have an opportunity to produce and sell camcorders, home theater systems and televisions, the research firm said.

"With the growing digital nature of consumer electronics, products from computer manufacturers represent truly viable alternatives in the eyes of the consumer," said Lee Smith, president and COO of InsightExpress, in a statement. "PC manufacturers are well positioned to gain consumer acceptance and long-term share within the consumer-electronics market by leveraging their technical superiority, high levels of customer support and attractive prices."

As PC makers enter the consumer-electronics mix and multiply the number of digital devices in the marketplace, home users also will increasingly seek products that work together and can be networked, industry observers said. But many consumers will need expert help in choosing compatible products and piecing together integrated solutions, they said.

"You're going to get a mish-mash of products that all do pieces of the pie, and someone is going to have to be there to figure out which components to purchase to get a system that works well," said Chris Kaminski, president of FutureHome Guild, a Ferndale, Mich.-based network of home integrators. "Consumers will have a choice of either doing a year of research [to do the job themselves] or having a consultant come in and help them make those decisions. And in the digital world, those decisions are going to change very frequently with upgrades and new versions [of products]."

Advances in device capabilities, too, will push consumers to seek out skilled assistance in assembling digital home solutions, according to Erret Kroeter, director of partner programs at Gateway, Poway, Calif. For example, Gateway sells a networked DVD player that can stream multimedia content from a PC to a television over a wired or wireless connection, and down the road users may want tie in other components, such as hard drives or servers, for storing and delivering content, Kroeter said.

"I think a lot of people might try to start hooking [devices] together and then realize, 'Wow, I'm in over my head,' " Kroeter said. "That's a real opportunity for solution providers."