Larry: Both you and I have been around this game long enough to know that it is foolish to ever say "that can't be done" with respect to chip-based products. Can a deep-pocketed company sell a full-blown, entry-level PC for $500?...probably, especially if they want to blow competitors off. Would they make a profit at this price point?.... not possible at the moment, as the component costs exceed the selling price by a significant percentage, once one adds in the various mark-ups.
Any price point can be depressed by selling less......use the TV set as a monitor, forget a CD-ROM, no printer, no enhanced graphics, no modem, etc....the question is, will this eviscerated system sell, even to the neophyte? I doubt it, and so do most in the field, many of whom don't want it in their shops anyway, as they figure that it will put even more pressure on already skinny retail margins.
It's my belief that PC's have been around long enough that most non-owners are familiar with the basic uses, and will not be interested in purchasing a system (and that is what it is...a system), unless he/she can enjoy most of its normal applications out of the box.
This cycle is essentially finished, and the various manufactures involved therein are already exhibiting the normal signs of stress that one would expect at this point. The problem lies within the market.....participants DON'T CARE anymore about fundamentals given their belief that stocks just go up. Lemings approaching the cliff edge.
Best, Earlie |
