business

Pc Resellers: Friends In Small Places

With competition from computer "superstores" and mail-order houses, life has not been easy for traditional computer stores of late. But, according to an industry trade group, there is still a loyal following for full-service computer stores among small businesses. A Gallup Organization poll, which was commissioned by ABCD The Microcomputer Industry Assn., found that 75% of small businesses bought computers and software from a dealer or value-added reseller. The survey drew responses from 500 companies with annual revenues of $1 million to $20 million.

But small-business loyalists won't halt the contraction of the dealer channel, predicts Merrin Information Services Inc. in Palo Alto, Calif. The market researcher says sales of PCs through dealers will drop from 91.9% of PCs sold in 1990 to 65.3% in 1993. Computer superstores and other alternate channels will grab nearly 35% of the business in 1993, up from 8.1% in 1990, says Merrin.

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