On the day after Christmas, December 26, 2014, Amazon published a press release titled Amazon Prime Experiences Another Record-Breaking Holiday Season (http://phx NULL.corporate-ir NULL.net/phoenix NULL.zhtml?c=176060&p=irol-newsArticle&ID=2002024). This press release included a listing of the most popular purchases for the holiday gift-buying season. In the computer category the winner was the Acer C720 Chromebook.
Some writers made a point of this press release. Brooke Crothers wrote a piece for Forbes titled Chromebooks From Acer, Asus, HP Top Holiday Sellers On Amazon (http://www NULL.forbes NULL.com/sites/brookecrothers/2014/12/29/chromebooks-from-acer-asus-hp-top-holiday-sellers-on-amazon/).
But a mere 4 days after the publication of this list, on December 30, 2014, the top selling laptop was an Asus running Microsoft Windows.
So what is the significance, if any, of the Amazon statistics? Readers approaching personal computers as pure commodities (I admit to membership in this camp) may want to note the decline in street price represented by these transactions and consider the impact, if any, on adjacent hardware computing form factors (namely tablets). But even by this measure the Amazon statistics can be misleading: the best selling computer device on the Amazon web site on December 30, as of 5:30pm, was the Kindle HD tablet, with a price of $99.00. So, is it, therefore, safe to say the street price for personal computing devices is now firmly established below the $100 mark? Further, does this mean we are looking at a substantially higher volume of devices sold?
I don’t think so. The dollar impact of all of these comparatively inexpensive computing devices is not, in my opinion, likely to mean much of anything good for the bottom line of manufacturers. Commodities are all about big volumes and very low margins. So all of these sales may amount to more of a headache for Asus and its competitors, than anything else.
But what about the impact of the volume of operating system (O/S) licenses associated with these sales? The Amazon press release identifies Google’s Chrome O/S as the winner. So is it safe to say Microsoft took a hit from the season? I don’t think so. Chrome is a cloud O/S. If, for argument’s sake, I buy into the notion Chromebooks were the real best seller for this holiday season, then the impact of choice associated with cloud (and the possibility some of these new Chromebook owners will opt for a personal subscription to Office 365) is a big factor rendering any call too early to tell.
Ira Michael Blonder
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