Notebooks Dominate 2007 Computer Market: NPD

PORT WASHINGTON, N.Y. — The NPD Group reported that notebook dollar volume was more than double that of desktops in 2007.

NPD said notebooks generated $19.6 billion last year, a 23 percent increase, in the United States, while desktops were responsible for adding $9.1 billion to the bottom line, up two percent from the previous year.

Not only were notebooks responsible for more dollar volume than desktops, but the category far outstripped LCD TV, digital cameras and MP3 players, NPD said. But one obvious trend indicated by the NPD report is LCD TV sales are surging, having increased 74 percent compared with 2006.

Proving LCD TV is coming on strong, the category did perform better during the 2007 holiday selling period when it brought in $1.7 billion, up 51 percent from the prior year. Notebook sales rose 12 percent, bringing sales up to $1.1 billion. Digital cameras were the next most popular item, with $737.5 million in sales; however, this represented an 11.5 percent fall off from 2006. MP3 players dollar volume also dropped about 11 percent on sales of $700 million.

GPS dollar sales volume increased 170 percent on $388.6 million in sales.

NPD reported that holiday sales last year fell 2 percent to $9.6 billion.

"It's concerning to see sales growth slowing, but not unexpected as industry trends point towards a consumer technology market offering its customers more evolutionary, rather than revolutionary, technological improvements," said Steve Baker, NPD industry analysis VP.