MicronPC.com, or, "Where Are They Now?"
Nampa, Idaho, May 10, 2000-Micron Electronics, Inc. announced the successful
completion of a 10-store pilot and full 358-store roll-out of its partnership
with Best Buy Co., Inc., which makes micronpc.com computers available
in all Best Buy stores in the U.S.
President and Chief Executive Officer Joel J. Kocher said the initial
pilot roll-out in 10 Best Buy stores exceeded sales expectations for configure-to-order
PCs, and the mid-April nationwide launch drew brisk sales.
Once upon a time, we used to run into MicronPC.com (ne Micron Electronics)
pretty steadily at client sites. We always liked them. When TEC heard
this newsflash from Micron, why, it made us almost nostalgic. Whatever
happened to Micron? We thought we'd check in with the numbers. Ouch.
almost nowhere to go but up for Micron's PC business. During the last
three years, they have seen a steady decline in market share. These numbers
are especially troubling when one considers that the US desktop market
has been growing at a healthy 15-22% pace during the last two years.
PC Unit Sales
been looking to a different future - subscription sales, ASP services,
and its HostPro web site subsidiary. But they've lost focus on their base
market of consumers and SOHO users. IBM [NYSE:IBM] pulled out of retail
six months ago. That would have been the time to be on store shelves.
The Best Buy numbers look good, but Micron needs something more if it
wants to even match its 1999 performance.
the technical skill to be an adequate counter to the leading PC vendors.
For example, it eschewed the Intel 820 chipset in lieu of third party
chips integrated with its own manufacturing operation. In hindsight, this
was a good move, given the 820's history as an Intel problem child. They're
a good innovator, as evidenced by their arsenal of U.S. patents. But they
seem to lack the marketing muscle to sustain their innovations.
Micron needs more sales. They continue to produce a quality PC, but we
can't recommend Micron as a viable PC vendor until their sales numbers