US sales of computers over the Christmas holiday season have started in line with expectations, in contrast to last year's figures when high-tech sales experienced a dramatic and unexpected fall that drove computer makers deep into a slump, an analyst said.
The four-day Thanksgiving holiday weekend, which just ended, traditionally marks the beginning of the crucial holiday shopping season, which accounts for 25 percent of all US retail sales.
Last year's weak sales not only kicked off a long slump in the personal computer industry but also sparked a price war that has left almost all computer makers with huge losses.
In a report issued Tuesday, the influential Bear Stearns computer hardware analyst Andrew Neff said data from large chain stores -- like Best Buy, Circuit City Stores and Comp USA -- and some PC makers showed that sales were up significantly over last year but that customers were focused on low-end models and rebate packages.
Computer maker Hewlett Packard, America's second-largest PC seller, said sales were up 10 percent over the corresponding period last year.
Meanwhile, overall sales at the leading online stores were stronger than expected. Amazon reported selling about 12,000 more items per hour than it did at the same time last year. The company also pointed to more people setting up wish lists on its site, almost twice as many as last year.
At Yahoo Shopping, transactions doubled from last year's level, while BlueLight.com, the online arm of Kmart discount stores, reported sales were up 45 percent from last year.
Analysts said online sales have been helped by better Web sites, the demise of smaller Internet stores and the reluctance of some shoppers to frequent crowded places like malls. But overall sales could be damaged by the poor economy, which means that even though there are more shoppers online and even more purchases, there might be no increase in revenues as people buy bargain goods. Online shopping is also rising in popularity because it allows people to comparison shop.
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