APPLE MACINTOSH AND GATEWAY 2000 LED PC INDUSTRY IN BRAND LOYALTY

Computer Intelligence InfoCorp Research Reveals Brands with Highest
Repurchase Rates

LA JOLLA, Calif., July 11, 1995 -- A new study from Computer Intelligence
InfoCorp (CII) shows that the Apple Macintosh and PCs from Gateway 2000
led the PC industry in repeat purchase or brand loyalty ratings during
1994. The third through fifth brand loyalty spots were held by Compaq
Computer, Dell Computer and Hewlett Packard Co., according to the CII
study.

The brand loyalty ratings emerged from CII's annual [1m[1][0mConsumer
Technology Index (CTI) study, the largest, most comprehensive survey of
personal computer usage in the United States. In addition to compiling
composite repurchase rates for PC users, the CTI study analyzed brand
loyalty differences among respondents who use employer-provided PCs, who
use PCs at home and who are self-employed PC users.

As the PC industry transforms itself into more of a mass-market business,
PC brand loyalty is becoming a crucial measure of company success, said
David Tremblay, CII's Senior Analyst for PCs. The customer mix is
gradually changing from primarily first-time buyers to replacement buyers.
The most successful PC companies will figure out ways to leverage brand
loyalty to capture repeat business.

Not surprisingly, the CTI study found that respondents who purchased PCs
for personal home use generally showed lower brand loyalty than
individuals who work on employer-provided machines. The differences are
attributable mainly to price sensitivities among home PC users, who are
using their own, rather than company funds, and the fact that home users
do not need to go through the purchase approval cycles inherent in many
companies.

1994 Repurchase Rates for Major Brands

Previous Brand    All     Employer-        Home    Self-Employed
Owned             Users   Provided Users   Users       Users

Apple Macintosh   87%          88%          81%         91%
Gateway 2000      82%          86%          71%         71%
Compaq            64%          73%          29%         29%
Dell              63%          68%          27%         64%
Hewlett Packard   59%          63%          58%         39%

Source: CII Consumer Technology Index 1995

The CTI study showed that Apple Macintosh topped the brand loyalty ratings,
with an 87 percent overall repurchase rate. More than 9-in-10
self-employed Macintosh users made repeat purchases in 1994, and among
workplace Macintosh users, the repeat purchase rate was a strong 88
percent. Apple's showing was weakest, though still chart-topping, in the
home segment.

Despite Apple's successes, however, Tremblay noted the company has failed
to execute a successful plan to convert users of aging Apple II computers
into Macintosh buyers. Fewer than one in eight Apple II users who bought
another PC in 1994 bought a Macintosh. By increasing its win rate of Apple
II upgrades, Apple could boost its business significantly, Tremblay said.

Among the Intel/Windows PC manufacturers, Gateway 2000 ranked first in
brand loyalty in the CTI study with an overall repurchase rate of 82
percent. Gateway's second place showing was based on strong customer
loyalty across all three user segments.

Compaq, Dell and Hewlett Packard completed the CTI Top 5 for brand loyalty
with composite repurchase rates of 64 percent, 63 percent and 59 percent
respectively. Compaq's showing was based on its strength in the business
segment with employer-provided PCs. Compaq posted relatively weak scores
in the home and self-employed segments, attributable to the company's
primary focus on selling to businesses. Dell's loyalty results also were
skewed toward businesses.

In addition to charting brand loyalty, the CTI study tracked which
manufacturers' buyers defected and where they settled. For example, in
both the home and self-employed segments, CTI shows that Compaq's losses
were primarily to no-name clones, Gateway 2000, and, to a lesser degree,
IBM and Dell. No-name clones and IBM took repeat sales from Dell.

CII's annual Consumer Technology Index study is the largest, most
comprehensive survey of personal computer usage in the United States. The
annual 12-page survey polls more than 50,000 individuals throughout the
U.S. on the types and brands of equipment used at home and in the
workplace. The survey also gathers extensive demographic information from
respondents and ascertains their future PC purchase plans.

Computer Intelligence InfoCorp is the leading source of fact-based
information for the computer and communications industries. CII's
extensive research capabilities provide a wide variety of products and
services that help computer and communications companies sell and market
more effectively. All of the company's products and services are based on
proprietary information databases built and maintained by CII specialists.
Headquartered in La Jolla, Computer Intelligence InfoCorp has offices in
Boston, Farmington, Conn., Mountain View, Calif., and Europe.
 
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