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Byline: PATRICK SEITZ
Consumer intent to buy new personal computers perked up in August at the tail end of the back-to-school season and ahead of the Christmas shopping season. But while home PC demand is on the upswing, it still remains well below average.
The IBD/TIPP Home Computer Purchase Index rose 17% last month over July's figure to reach 18.5. That's on par with the 18.6 reading from August 2003. But it's considerably off the one-year average of 20.2. The higher the index readings, the greater the likelihood of home PC purchases.
Home PC purchase intent is regaining lost ground after sliding for four straight months. In July, it hit 15.8, the lowest reading since IBD's polling partner, TIPP, began collecting PC data in April 2002.
Still, there's reason for optimism. The index is in an uptrend based on its moving average, says Constantine Kambanis, an analyst at TechnoMetrica Market Intelligence. TIPP is a unit of TechnoMetrica.
"It's beginning to look as though this Christmas season may see healthier-than-expected PC sales," Kambanis said.
This holiday season will face tough comparisons with last year's stellar sales, says Steve Baker, an analyst with retail tracker NPD Group. He expects unit sales growth in the low single digits and revenue growth of possibly 5% to 7% because of the continuing shift from desktop to notebook PCs.