Kitsap Peninsula Business Journal
06-01-2000
Future Shop – Trends in home computing
   The world is witnessing a rise in home computer sales, a trend that appears strongly linked to the desire to get wired:

• In the U.S., according to a Cheskin Research survey, computer ownership among Hispanic households has risen 68 percent since 1998, compared with 43 percent for the general population — an increase driven largely by Hispanic consumers’ keen interest in getting online.

• In Japan, sales of home PCs have been fueled by falling prices and strong demand from young women who want to access email and surf the Web.

• In India, Net subscribers will reach the 1 million mark by the end of this year. IDC predicts that the home market will increase 163 percent by 2003.

• Trend: Learning at Home
Students of all ages are playing a leading role in the home-computing boom.

In Australia, where half of all homes have at least one PC and one in four have Net access, in 1998, 51 percent of children aged five to 17 frequently used a home computer for both work and play: 84 percent said they used it for learning and study activities; 85 percent, for games. At the same time, some of the nation’s postgraduates are bypassing Australia’s business schools to obtain online degrees from institutions such as Columbia University, Stanford University, and the London School of Economics and Political Science.

• Trend: Buying Direct
In the U.S., home-PC buyers are increasingly turning to direct channels in search of value and service, according to research firm Odyssey. A 1999 study by the firm found that 30 percent of home PCs purchased in the previous six months had been bought through the Internet or direct from the manufacturer via a Web site, catalog, or toll-free phone number. Odyssey attributes the shift to the rise in the number of educated computer consumers who know what they want and wish to avoid crowded stores and high-pressure salespeople.

• Trend: Home PCs as Perks
Major corporations are promoting computer literacy among their employees and their families by providing them with PCs to take home. First, Ford Motor Company announced that it will offer its 350,000 employees worldwide free computers, plus ‘Net access at $5 a month, in an attempt to improve literacy in new technologies.

Then Intel followed suit, announcing that it intends to give its 70,000 employees free PCs and Internet access — a perk that represents several months’ salary in company locations such as Costa Rica, where wages are low. A spokesperson says that the company’s intention is not to make people work at home but to enable computer use for leisure and education. Meanwhile, Delta Air Lines, American Airlines, and German media group Bertelsmann AG have announced similar plans.

In some countries, such acts of corporate generosity have received government support. Following Sweden’s example, last year the U.K. dropped a tax on computer equipment provided by companies to employees for home use.

• Trend: Wired Towns
The town of LaGrange, Georgia (U.S.) is attempting to bridge the digital divide by offering high-speed Internet access through existing cable television lines. Mayor Jeff Lukken told the Financial Times, “We want to make sure that no one gets left behind. We need to take care of those people below the poverty line and those who don’t have access to the Internet.” By the end of this year, more than 80 percent of LaGrange residents will be able to get on the Web by turning on their TV sets. The project’s cost, approximately $300,000 a year, will be borne by the city.

• What’s Next?

• Close Connections: The near future will see a boom in home networking, as families with multiple PCs link their machines to one another and eventually to home-automation equipment.

• Tune In and Log On: The Henley Centre forecasts that by 2002, television will overtake computers as the most popular way to surf the Net. Families will aspire to have a TV in every room, providing Web access from every corner of the home.

• One-Room Schoolhouses: The trend toward Net-based learning and the growth of home schooling will converge, and architects will start including wired classrooms in their plans for new homes.