PC Sales Slump Not Just Limited to Manufacturers; Retailers May Also Feel Pinch
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Some of the casualties in the declining PC game include the big box retailers, which are trading largely mixed on the session. Names include such fan favorites as Best Buy (NYSE: BBY), hhgregg (NYSE: HGG), (to a lesser extent) Wal-mart (NYSE: WMT), and RadioShack (NYSE: RSH), among others.
Generally, retailers don't make a ton off of PC sales; Best Buy is, in fact, known to have some of the best prices on PCs regardless of an online versus physical location price comparison. However, the retailers also enjoy robust margins from sales of accessories like cables, keyboard, monitors, mice, printers, print cartridges, etc., to go along with said PCs. Slumping sales might then lead to a little less foot traffic.
As a refresher, two noted market research firms -- IDC and Gartner -- came out with data on Wednesday showing a global slump in PC shipments. Hewlett-Packard retained the crown of top shipper, but the general consensus showed consolidation of about 11 percent or more in the segment. Gartner also commented that global PC shipments fell below the 80 million unit mark for the first time since 2009.
For Best Buy, the company reported a 5 percentage point gain in total revs coming from its Computing and Mobile Phones segment last quarter, to 42 percent of the total. Consumer Electronics, by comparison, accounted for 3 percentage points less to 35 percent.
Then again, maybe folks keeping older machines will need to come in more often and replace aging parts.
While Best Buy is lower on the session, hhgregg and RadioShack are ticking higher.
Generally, retailers don't make a ton off of PC sales; Best Buy is, in fact, known to have some of the best prices on PCs regardless of an online versus physical location price comparison. However, the retailers also enjoy robust margins from sales of accessories like cables, keyboard, monitors, mice, printers, print cartridges, etc., to go along with said PCs. Slumping sales might then lead to a little less foot traffic.
As a refresher, two noted market research firms -- IDC and Gartner -- came out with data on Wednesday showing a global slump in PC shipments. Hewlett-Packard retained the crown of top shipper, but the general consensus showed consolidation of about 11 percent or more in the segment. Gartner also commented that global PC shipments fell below the 80 million unit mark for the first time since 2009.
For Best Buy, the company reported a 5 percentage point gain in total revs coming from its Computing and Mobile Phones segment last quarter, to 42 percent of the total. Consumer Electronics, by comparison, accounted for 3 percentage points less to 35 percent.
Then again, maybe folks keeping older machines will need to come in more often and replace aging parts.
While Best Buy is lower on the session, hhgregg and RadioShack are ticking higher.
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