Information Technology Survey: 2004 financial year

Commentary

Total information technology sales

Results from the 2004 Information Technology Survey show that the total sales of information technology (IT) commodities (excluding communication services) for the 2004 financial year were valued at $7,015.3 million. This is a 0.6 percent increase on the result for the 2003 financial year.

This increase in total sales was primarily due to higher sales of software, up $121.2 million (14.4 percent) and computer services, up $34.1 million (1.4 percent). These increases were partly offset by a decrease of $94.9 million (10.8 percent) in the total sales of communications hardware and cables.

Graph, IT Sales to New Zealand End-users by Selected Commodities.

IT exports

The total value of export sales of IT goods and services (excluding communication services) during the 2004 financial year was $576.3 million. This is a decrease of $100.6 million (14.9 percent), when compared with the 2003 financial year.

Graph, Total IT Exports (Excluding Communication Services).

Between the 2003 and 2004 financial years, exports of communication hardware and cables decreased by $113.1 million (42.7 percent), while exports of computer services increased to $248.8 million (1.3 percent).

Graph, IT Exports by Selected Commodities.

Total IT sales to New Zealand customers

The 2004 IT Survey splits New Zealand customers into end-users and other customers. Statistics New Zealand defines New Zealand end-user sales as "sales to those purchasers who buy goods for their own use, rather than on-selling". Sales to other customers are defined as "sales not classed as exports or sales to New Zealand end-users". This category includes sales to businesses that on-sell the IT goods or services.

For the 2004 financial year, the total sales of IT goods and services to New Zealand end-users and New Zealand other customers (excluding communication services) was valued at $6,439.4 million, an increase of $140.9 million (2.2 percent) from the 2003 financial year. This is the highest total sales to New Zealand customers recorded since the IT Survey first ran in 1994.

Graph, Total IT Sales to New Zealand Customers (Excluding Communication Services).

IT sales to New Zealand end-users

The total value of sales of IT goods and services to New Zealand end-users (excluding on-selling activities and communication services) was $4,853.7 million, an increase of $487.1 million (11.2 percent) from the 2003 financial year.

There were strong increases in all sales categories except training and education in IT, which fell $35.8 million (29.9 percent) to $83.9 million. Sales of computer services increased 4 percent to reach $1,971.8 million, peripheral computer equipment increased $200.6 million (46.2 percent) and software also increased $136.1 million (27.8 percent) to $624.8 million.

Graph, IT Sales to New Zealand End-users by Selected Commodities.

IT sales to other New Zealand customers

Sales to other New Zealand customers are sales made to businesses that on-sell the goods or services (including sales to retail or wholesaling outlets).

Total IT sales (excluding communication services) to other New Zealand customers decreased 17.9 percent in the 2004 financial year, to $1,585.7 million.

There were large decreases in most sales categories in the 2004 financial year. Sales of computer hardware decreased $251.1 million (19.1 percent) to $1,065.2 million. Communications hardware and cabling decreased by $42.7 million (28.8 percent) to $105.8 million, and computer services also decreased $44.9 million (19.9 percent) to $180.9 million.

Graph, IT Sales to Other New Zealand Customers by Selected Commodities.

Total communication services sales

Total communication services sales decreased $1.7 million to $5,256.1 million (0.03 percent) in the 2004 financial year.

Sales of communications services are combined from the export, New Zealand end-user and other New Zealand customers categories in the IT Survey. This aggregation is done to adhere to Statistics New Zealand confidentiality standards.

Graph, Total Communications Services Sales.

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IT goods and services pricing

The data reported in the 2004 IT Survey is collected and reported in nominal dollar values at time of sale. These nominal sales figures combine price and volume movements. Price movements of these goods and services may disguise the volume or quantity changes in goods and services sold.

The changes in prices of goods are measured by price indexes, including the Capital Goods Price Index and the Producers Price Index. For example, the Capital Goods Price Index records that the ‘Computer machinery’ category decreased 13.1 percent in value in the March 2003 to March 2004 year.

Although quantifying the exact impact is not possible in this publication, price changes for goods and services will have impacted on the underlying real or quantity change experienced.

For technical information contact:
Gareth Meech or Eileen Basher
Wellington 04 931 4233
Email: info@stats.govt.nz