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Cheap Windows PCs push Apple into #5 spot - Once again, price is king

It seems that computer sales sky-rocketed during the fourth quarter of 2009, and that while Apple showed strong gains, strong sales from Windows OEMs has pushed the company into fifth place.
Written by Adrian Kingsley-Hughes, Senior Contributing Editor

It seems that computer sales sky-rocketed during the fourth quarter of 2009, and that while Apple showed strong gains, strong sales from Windows OEMs has pushed the company into fifth place.

According to Gartner and IDC, Apple sales were up between 23% and 31% during Q4 (depending on which analyst you trust), but this wasn't enough to keep the Cupertino giant from slipping to fifth place, behind  Hewlett-Packard, Dell, Acer and Toshiba, in both analyst's estimates.

Q4 2008 saw Apple command fourth place on that list.

According to IDC estimates, Apple's performance outperformed the US computer industry average, but in what is likely to be worrying for shareholders, Gartner rates Apple's performance as below average.

IDC research manager David Daoud had the following comment:

"The U.S. market exploded in the fourth quarter. The vendors responded with new low price points to stimulate demand and face competition."

That is, vendors other than Apple.

Good news for HP and Toshiba though, which according to analysts have seen unit sales increase by 45% and 71% respectively.

I think that price definitely played a part here. When the economy turns soggy and credit isn't as easy to get as it once was, price is once again king. That said, I'm certain that Windows 7 also played a part here. There's been pent-up demand for the new OS and releasing it in the run up to the holiday spending extravaganza will no doubt have made it easier for PC OEMs to sell new desktops, notebooks and netbooks. The real question is whether this effect will carry on into 2010.

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