U.S. Consumers and Small Businesses to Spend More than $18 Billion in 2009 on PC-Related Accessories, Peripherals, Software, and Services

FRAMINGHAM, Mass. – May 12, 2009 – Despite restrained consumer and business spending, the U.S. market for PC accessories and related peripherals, software, and services continues to represent a substantial opportunity for PC vendors, independent software developers, peripheral makers, and critical component suppliers. IDC's third annual Beyond-the-Box survey confirms that, within the first 12 months of making a PC purchase, U.S. consumers over the age of 18 spend an average of $0.87 on additional PC-related purchases for every $1 dollar they spent on a PC. Small businesses with less than 100 employees spend an average of $284 per PC on other products and services that enhance usage and productivity, while securing their computing environment.

On the consumer side, the most common product category purchased is software, for both desktop and notebook buyers, with a majority of respondents purchasing anti-spam and/or security software. Over half of survey respondents tend to buy accessories in retail stores at the time of purchase, with the second most common choice being retailers' own online websites absorbing 20.4% of the buyers.

On the small business side, top products in popularity terms are office productivity software, anti-spam/security software and storage products. The most common choices bought at retail are hardware devices, while software is most commonly purchased online. The largest portion of the small business budget for accessories is spent at the time of the purchase, while another 26.2% of the overall budget is spent within three months of the PC purchase. IDC also notes that for PC purchases, small business buyers acquire the majority of their desktops as replacements for existing desktops, while most notebooks are additional PC purchases.

"The estimated size of PC-related purchases in the transactional market, excluding the PC itself, is $18.8 billion this year (2009) and that is the low end of the potential range," says David Daoud, research manager in IDC's Personal Computing, PC Tracker, and Green IT programs. "Evolving usage models are what drive consumers and businesses to spend on such products, not only to secure their computing environment and guarantee privacy, but to also enhance their PC usage experience with the appropriate set of accessories, services, and software. We see budgets earmarked for security, storage, display systems, digital and entertainment products, and productivity tools, among the 60 products investigated. The way vendors, retailers, and their partners should approach these potential buyers requires carefully designed approaches based on deep segmentation."

IDC's Beyond-the-Box survey has been conducted over the past three years to assess the size of the PC basket. Among the variables covered are nearly 60 product types, time of purchase, budget spent on each product, brand selected, and channels of purchase. The research expands into specific demographics of value for companies looking to refine their existing go-to-market strategies or establish new one.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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