October 19th, 2009
StatsCan reports 10.9% decline in computer and software store sales
Stats Canada has reported 3rd quarter economic statistics indicating broad declines in most sectors in consumer spending. Computers and software showed significant declines over 10%.
While many companies are indicating that the worst is over, Canada will lag behind U.S. economic recovery. The statistics don’t show new growth for many companies like Microsoft’s new SYNC platform in Ford cars and trucks, that are now seeing increased sales. Companies like Google are not required to report any numbers to the Canadian government’s Stats Can Bureau. Google is seeing growth in Canada but are not broken out in their U.S. SEC filings. Google did break out U.K. revenues which accounted for 13% of total revenues.
Canadian government incentives in computer and software technology R&D have been significant in the past. Consumer spending in IT and not corporate evergreen upgrades are likely to be the recovery source for computer and software sales. But when?
The Canadian Radio and Telecommunications Commission (CRTC) has conducted several hearings on broadband access focusing on rural communities. This has not translated into new consumer computer or software sales growth either. Bell Canada, Telus and Rogers have seen stagnant revenues in wireless sales as consumers continue to be hesitant in spending or even replacing existing phones. In fact, many are downgrading what they have. Many of the rural areas are planned service areas delivered by 3 & 4G broadband along with WiMax access points and expanded DSL and Cable services. Many of these roll outs won’t be completed until 2010. A detailed 2008 CRTC report shows continued growth in Internet access with revenues from Internet services now account for up to 15% of their bottom line.
