PC STOCKS SLUMP AS SALES SLOW.Byline: Jesse Hiestand Staff Writer Shares in personal computer makers rebounded somewhat Friday, but concerns persist that computer sales will slump sharply this holiday season as shoppers opt for digital cameras, handheld organizers See PDA. and other electronic gadgets. Driving this trend are consumers like Beverly Keating of Woodland Hills, who is content with her 3-year-old computer even though it may lack some cutting-edge features. ``I just use it mainly for e-mail, so it's good enough,'' said Keating, a retired nurse, as she left Fry's Electronics Fry's Electronics is a specialty retailer of software, consumer electronics, computer hardware and household appliances with a chain of superstores headquartered in Silicon Valley. Starting with one store located in Sunnyvale, California, USA, the chain now boasts sales of $2. in Woodland Hills with a new mouse. ``I don't see (a new computer purchase) in the near future because of what's going on What's Going On is a record by American soul singer Marvin Gaye. Released on May 21, 1971 (see 1971 in music), What's Going On reflected the beginning of a new trend in soul music. in the economy - the slowdown, the uncertainty in the stock market.'' That volatility was fueled this week by San Diego-based Gateway Inc.'s warning that PC sales are slumping, leadings its stock to plummet nearly 40 percent and souring the market on other PC and chip makers. Shares in Gateway rose 12 cents on Friday to close at $19.12 on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Other computer makers fared better in trading Friday, including International Business Machines Corp. and Apple Computer. Compaq Computer Corp. rose $1.30 or 6 percent to $22.80 after its board had authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase of up to $1 billion of its stock. Some in the computer industry see little sign yet of a sales slowdown. Among them is Tom Feliz, who sells and services home and business computers for the Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. office of Computer Advice. ``I've been so busy, it's sick,'' Feliz said after shopping for computer gear at the Circuit City store in Woodland Hills. ``There's always people buying new stuff, but it's not the big boom anymore.'' Following Feliz into Circuit City was Marty Miller, a Calabasas marketing consultant who bought a top-of-the-line Gateway PC this week - only because he is retiring soon and can treat it as a business expense. ``I wouldn't have bought it if I didn't think I could write it off,'' said Miller, 60, who largely uses computers for word processing word processing, use of a computer program or a dedicated hardware and software package to write, edit, format, and print a document. Text is most commonly entered using a keyboard similar to a typewriter's, although handwritten input (see pen-based computer) and and Internet access See how to access the Internet. . ``They cost a lot of money and given the way the stock market is going, there's a lot of uncertainty and a lot of money people thought they had is not there anymore.'' Even with that, gadgets like the handheld organizer Pat Porter, 45, of Topanga Canyon, bought at Fry's on Friday are expected to sell well this season. And while he recently bought an Apple iMac computer for his children, he plans to hold off on replacing his two-year-old Apple laptop in favor of buying a hot item this season, a digital camera. ``If I don't have to upgrade, I'll wait because every six months something new comes out,'' Porter said. Gary Gertzweig, a 41-year-old owner of a small record label who was shopping at Fry's, agrees: ``For my money, if I'm going to buy a new computer or work with the one I have, I'd work with the one I have.'' CAPTION(S): photo Photo: (color) Herbert Valdez, with daughter Brianna and wife Abby Ulm, considers buying a computer at Circuit City in Glendale on Thursday. Gateway warns of sluggish sales and lower profits, while Hewlett-Packard Co. is more optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op . Nick Ut/Associated Press |
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