North American PC Application Software Sales Reach $1.43 billion in Third
Quarter, 1992 

Pricing pressure slows revenue grow to 11.6%

November 23, 1992 (Washington, DC)- The Software Publishers Association
announced today that North American personal computer application software
sales for the third quarter 1992 increased to an estimated $1.43 billion,
measured at retail. Sales of application software grew 11.6% over the
third quarter, 1991. For the first three quarters of 1992, North American
sales reached $4.15 billion, an increase of 17.5% from the first three
quarters of 1991. Although the rate of revenue growth in the latest
quarter was lower than in other quarters in 1992, unit sales continued to
grow. In the third quarter, unit sales were over 30% higher than in the
third quarter of 1991.

Revenue from international sales of US software companies participating in
the SPA data program grew 27.4% for the quarter, while combined North
American and international sales were up 16.9%. After lagging US sales
growth for several quarters, international sales are picking up again. For
the first three quarters of 1992, international sales grew 20.6%, while
combined international and domestic sales grew 18.6%.

A total of $644 million of DOS applications were sold in the third quarter
of 1992, a decline of 16% compared with the third quarter of 1991. Despite
the decline, DOS remains the largest-selling format for personal computer
applications. Through the first three quarters of 1992, a total of $1.9
billion of DOS applications has been sold in North America.

Sales of Windows applications in North America reached $487 million in the
third quarter of 1992, an increase of 91% over the third quarter of 1991.
While still growing faster than either DOS or Macintosh applications, the
growth rate of Windows applications slowed in the third quarter from 178%
in the second quarter of 1992 and 98% in the first quarter.

Sales of Macintosh applications reached $243 million in the third quarter,
an increase of 17% from the third quarter of 1991.

Word processors remained the largest application category, with sales of
$229 million, an increase of 23% compared with the third quarter of 1991.
Spreadsheets was the second largest category, with sales of $206 million
in the latest quarter. However, spreadsheet sales decreased 5% in the
quarter. A 15% gain in Windows spreadsheets was not enough to offset sales
declines for both DOS and Macintosh spreadsheet applications. Sales of
utilities software also declined compared with the year-ago quarter, as
sales increases in Windows (+86%) and Macintosh (+27%) utilities were not
able to overcome a 61% decline in sales of DOS utilities.

Home education software was the fastest-growing category, with sales up 57%
over the year earlier period. The sales growth of home education
applications was more than 50% in DOS, Windows and Macintosh formats.
Entertainment software also shone in the third quarter, with sales up
27%.

"While unit sales growth for the quarter was healthy, pricing pressures in
business applications and stronger growth in lower cost segments combined
to hold down revenue gains this quarter," said SPA Research Director David
Tremblay.

The Software Publishers Association is the principal trade association of
the PC software industry. Its 1000 members represent the leading
publishers in the business, consumer, and education markets. The SPA has
offices in Washington, DC, and Paris, France.

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

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