Bigger Sales Now In Smaller Packages As Notebook PCs Surpassing Desktops; Changing Of The PC Guard.(A)

Byline: PATRICK SEITZ

Personal computer owners are going mobile, moving to notebook PCs from desktop PCs in increasing numbers.

In May, revenue from notebook PC sales passed that of desktop PCs at U.S. retail stores for the first time ever, market tracker NPD Techworld reported Tuesday. Notebooks accounted for 54% of the nearly $500 million spent on PCs at the major retail chains, NPD says. Two years ago, the figure was 39% and a year ago it was 46%.

Notebooks have been a bright spot for the otherwise lackluster PC industry. PC makers like notebooks because they tend to be more profitable than desktops. They're less commoditized than desktop PCs, so vendors can distinguish their wares with features and design.

Research firm International Data Corp. expects notebook PC sales will rise 15.3% in the U.S. and 14.2% worldwide this year over last. But it expects total PC sales will rise just 5.3% in the U.S. and 6.3% worldwide.

Businesses continue to pinch pennies. But consumers, not businesses, are driving notebook computer sales of late, analysts say. IDC expects consumers to account for 35% of notebook sales this year, up from 32% last year.

Hitting The Right Note