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Christmas PC Sales Look Bright, But Dell's Brand Loses Luster; Likelihood Of Buying Goes Up; Dell was the top brand for 39% of likely PC buyers, a fall from 51% in September.(INTERNET & TECHNOLOGY)(IBD/TIPP POLL)

Investor's Business Daily

| November 02, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: PATRICK SEITZ

The holiday shopping season is looking up for personal computer makers overall, according to a new consumer survey. But No. 1 PC maker Dell, which Monday warned that its third-quarter profit and sales will come in lower than expected, suffered a big drop in consumer brand preference last month.

The latest IBD-TIPP Home Computer Purchase Outlook Index rose 13% in October to 19.8. The index ranges from 0 to 100, with higher index readings corresponding to greater consumer PC purchase plans over the next six months.

The October poll results are nearly a full percentage point above the 12-month average of 19. That bodes well for consumer buying of new desktop and notebook computers over the Christmas shopping season, says Constantine Kambanis, an analyst at TechnoMetrica Market Intelligence. He expects sales to match last year's levels despite the recent hurricanes and soaring energy prices.

TechnoMetrica, IBD's polling partner, interviewed 900 U.S. adults in a random phone survey Oct. 3-8.

Of those surveyed, 23% say they are likely to buy a new PC in the next six months. That compares with 19% in September and a year ago.

The latest TIPP poll results indicate that consumers have shaken off concerns related to the impact of the Gulf Coast hurricanes, especially higher gasoline prices. In September, the index fell 9% to 17.6 in the wake of Hurricane Katrina.

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