June PC sales get a "free" ride

The "free" PC craze lifted retail PC sales considerably higher in June compared to June 1998, according to PC Data's Retail Hardware report.

A surge in ISP rebates and "free" offers in late June were largely responsible for the 35.4 percent unit increase over June 1998 figures.

PC makers and retailers also rode a wave of decreasing hardware prices, which reduced average price tags on Wintel PCs to $890. The price reduction represents the lowest level to date, and marks the third consecutive month of 20 percent year-over-year price declines.

Overall PC sales increased 35.4 percent, with Wintel-only sales up by 31.8 percent.

Sub-$1000 models continue to dominate PC sales, advancing by more than 118 percent versus June 1998. The low-price models accounted for 70.7 percent of all sales in June 1999, versus only 46.4 percent in June 1998.

In the processor wars, Intel's market share rose to 59.1 percent of sales, up from only 44 percent in February and 55.6 percent in May. AMD held the lead in retail storefronts, but that margin shrank from a 46 percent lead in February to only 8 percent in June. Celeron-based PCs were the primary weapon for Intel in this category, capturing more than 34 percent of unit sales in June 1999, more than double the market share of Celeron PCs in February.

PC Data's web site is at www.pcdata.com .