A decade ago, a computer buyer might have focused on a computer’s memory and processing speeds. Now, the computer serves as a kind of high-tech hub for the rest of the technology that surrounds it.
Connected to a digital music player, a television set and a wireless network, the basic computer now represents just one piece of a bigger entertainment and communication system with uses such as gaming, photo sharing and online shopping.
As consumers’ home systems become more complex, users shop more for customer support and service, including for fix-it services that repair or install the systems. According to IDC, a research firm, more than 90 percent of computer households have a high-speed Internet connection and 86 percent have home networks that link multiple computers. Consumers typically upgrade every four years, and laptops are gaining in popularity over bulky desktops. As buyers demand change, manufacturers and retailers that once relied heavily on computer sales are being forced to revamp their strategies to meet the their needs.
One-time sector leaders Dell and CompUSA boomed several years ago by focusing on computers but have suffered as the market shifted away from computer-only sales. Now, both are starting to make drastic changes to their business models.
CompUSA said earlier this year that it would close 126 of its 229 stores nationwide as it focuses on less-competitive regions and reduces its product lineup to cater to smaller businesses and technically savvy users.
Earlier this week, Dell chief executive Michael Dell announced a restructuring plan in a memo to employees.
To become more responsive to changing customer needs, Dell has launched a Web site, www.ideastorm.com, soliciting suggestions from customers.
Dell “wants to be a solutions provider, not just sell the box to the customer,” said Richard Shim, an analyst with research firm IDC who authored reports on buying behavior in 2005 and 2006. “PC makers have been forced to change. They’ve been forced to specialize more.”
Consumers have a greater understanding of what the computing experience should be and therefore are more discerning shoppers, analysts said.
“As technology has gotten more and more important in people’s lives, they’ve become more comfortable buying electronics in general: digital cameras, iPods, cellphones,” said Stephen Baker, an analyst with the NPD Group.
The complexity of networking all those devices has helped companies like Apple and Best Buy market customer-support services.
Best Buy’s Geek Squad caters to people who don’t want to spend time figuring out how to connect one gadget to the next and sells call-in, drop-in or house-call service for technical assistance.
“Technology continues to evolve and rarely gets simpler,” said Wendy Fritz, vice president of computing for Best Buy.
“The customer is much more aware of the effect that computing has on different aspects of their lives. They know what they want,” she said, and they often want assistance in setting it all up.