Desktop Sales Soar On Windows 7 DemandDesktop Sales Soar On Windows 7 Demand

Desktop sales at U.S. retail stores soared in February, driven in part by the popularity of Windows 7 PCs and Apple's all-in-one iMacs, a research firm said Thursday.

Overall desktop sales rose 30% in terms of units sold and 33% in dollars year-over-year, The NPD Group reported. February marked the third time in the last four months that desktop revenue grew faster than laptops, and the fifth consecutive month of revenue and unit increases.

The start of the new decade has been a boon to desktops makers, which saw sales drop in the last 10 years, as consumers flocked to mobile PCs. "Desktops have been the surprise consumer technology growth category of 2010," NPD analyst Stephen Baker said in a statement.

Average selling prices for desktops climbed nearly 3% in February from a year ago to $670, far above the laptop ASP of $602, according to NPD. The higher prices reflect rising demand for both Windows PCs and Macs.

"Windows 7 has been propelling the PC side of the market where desktop ASPs have been higher than notebook/netbook ASPs in three of the last four months," Baker said in a statement. "We are also seeing tremendous growth numbers from the iMac after a few lackluster quarters from Apple."

Unit sales of Windows desktops rose 15%, while revenue increased 8% over the four months since the Windows 7 launch, NPD says. While the increase is modest, it's a positive trend considering that before the introduction of Windows 7, desktop sales fell 21 out of 22 months.

Baker said in his blog that sales of Windows 7 desktop is likely due to buyers replacing aging Windows XP systems. In addition, the inclusion of Windows Media Center and streaming capabilities in Windows 7 desktops, features promoted heavily in the media, may be prompting more consumers to consider the desktop as a set-top box device.

The resurgent desktop market is particularly good news for Dell and Hewlett-Packard, as the rebirth of what was once thought a dying market reflects consumer's need for more powerful, more capable family PCs, Baker said. "And since a higher proportion than in prior years is going to come from higher value configure-to-order web offerings those two brands are likely to benefit."

Retailers are expected to benefit from the higher ASPs and from the boost higher desktop sales will likely give to the add-on and accessory market.

NPD's report looks only at U.S. retail store sales and does not include online sales.