Macintosh Owners Most Loyal, But Gateway Not Far Behind, As Compaq Leads Overall Share

ROCHESTER, NY, March 5, 2001 –Harris Interactive (Nasdaq: HPOL), the global leader in Internet-based research, today released the results of a new survey of more than 140,000 Internet users, including more than 6,500 who purchased a home PC in the first three quarters of 2000. Among other topics, this study examined brand shares among first time home PC buyers and brand loyalty among repurchasing home PC buyers.

Gateway Inc. (Gateway) and Hewlett-Packard (HP) Favorites Among First-Time Buyers

The study showed Compaq as the overall unit share leader, followed closely by HP and Gateway. Together, these three brands accounted for about half of the consumer PCs purchased in the first three-quarters of 2000. Gateway was the number one brand among first-time home PC buyers. Its share among first-time buyers was nearly 50% higher than its overall share and significantly higher than its share among repeat buyers. HP also had a higher share among first timers than repeat buyers did, but its share was more balanced than Gateway’s. In contrast, Compaq was stronger among repeat buyers than among first timers, although its share was also relatively well balanced.

Repurchase Loyalty Has Apple On Top, With Gateway Best of Wintel Brands

The study found wide disparity in repurchase loyalty among the top PC brands. Apple Macintosh owners were the most loyal – just over half of Mac owners who bought a personal computer in the first three-quarters of 2000 repurchased a Mac. Gateway’s customer loyalty was highest among Wintel brands with a 45% repurchase rate. IBM had the lowest repurchase loyalty among the top brands, with only 9% of IBM PC owners buying another IBM brand PC when they bought a new home PC. (See table below.)

"As the consumer PC market matures, repurchase loyalty is a key measure for PC brands," stated Dave Tremblay, director of technology research for Harris Interactive. "First time buyers account for only about one-fifth of all consumer PC purchases. While strength in that segment is a bonus, you can’t build a business relying on these buyers. The easiest buyers to capture should be a Brand’s current users. If a company cannot successfully sell to its own customers, it will likely have problems selling to its competitors’ customers. IBM is a good example of this. When IBM de-emphasized its traditional retail consumer distribution channels, its customers abandoned the brand; fewer than one in ten IBM brand PC owners repurchased an IBM brand PC. While strong repurchase loyalty is not enough (witness Apple’s high loyalty but declining share), it is a very good place to start."

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