North American PC Software Sales Reach $1.59 Billion in Second Quarter,
1994

Macintosh Growth and DOS Decline Make Macintosh the Number Two Platform

September 12, 1994 (Washington, DC) - The Software Publishers Association
(SPA) announced today that personal computer application software sales in
the US and Canada reached $1.59 billion in the second quarter of 1994, a
16.2% increase from second quarter, 1993. For the first half of 1994,
total sales were $3.09 billion, an 18.1% increase from the first half of
1993. North American unit sales increased 72% in the second quarter and
66% for the first half of 1994.

Windows platform remains largest, as Macintosh platform vaults past DOS
into second place

Sales of Windows-based applications again led the charge, reaching $1.05
billion for the quarter, an increase of 55.2% from the prior year's second
quarter. Macintosh applications sales grew 9.5% to $276 million. Coupled
with a decline in DOS applications sales, the growth vaulted Macintosh
into second place behind Windows. DOS application sales continued to
decline, falling 47.5% to $235 million for the quarter. For the first
half, Windows applications sales were $1.95 billion (up 49%), DOS
applications sales were $553 million (down 42%), and Macintosh
applications sales were $537 million (up 14%).

"It was inevitable that Macintosh and DOS sales would cross," said SPA
Research Director David Tremblay. "Windows has displaced DOS as the
platform of choice in the Intel/compatible world. As our figures show,
Windows applications have supplanted DOS applications in almost all
categories."

In only two categories have DOS applications been able maintain a
relatively large share of sales. In utilities software, which adds
functionality and ease-of-use to DOS, DOS applications account for about
one-third of sales. In entertainment software, where DOS provides a
performance advantage over Windows, DOS products account for just over 50%
of sales. Even in those strongholds, though, DOS applications sales are
declining, while sales of Windows applications are growing at double- or
even triple-digit rates.

Word Processors and Spreadsheets remain largest categories

With sales of $279 million, the word processors category was easily the
largest application software category in the second quarter. Spreadsheets,
at $208 million in sales, was the next largest category. Word processor
sales grew 7% for the period, while spreadsheet sales declined 5%.
Databases were the only other type of software to sell over $100 million
in the quarter, reaching $131 million, up 36% from the second quarter of
1993. Drawing and painting applications also had a very good quarter, with
sale of $81 million, up 42% for the prior year.

Consumer category again leads in growth

Over the last 18 to 24 months, the dramatic decline in hardware prices has
caused the home personal computer market to exploded, and home-oriented
software has followed the hardware sales. Home education software was
again the fastest growing application software category, with sales up
121% to $81.6 million in the second quarter. Sales of entertainment
software were $82.0 million for the quarter, up 38%.

The Software Publishers Association is the principal trade association of
the PC software industry. Its 1,100 members represent the leading
publishers in the business, consumer, and education markets. The SPA has
offices in Washington, DC, and Paris, France. SPA press releases are
available on-line through CompuServe (GO:SPAFORUM), and from SPA's faxback
service at 800 637-6823.

Software Publishers Association
1730 M St, Northwest, Suite 700, Washington, D.C. 20036
202-452-1600,  Fax: 202-223-8756

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