Fred... The PC market is becoming like the automobile market where you have price ranges from $11,000 Ford Escorts to $60,000+ Mecedes, and everything in between. They all get you from point A to Point B without getting wet in the rain. Paying $2500 for a computer is just too much for many families, and they will find a $1000 computer suits their needs if not all their wants. In the case of the auto industry, expensive regulatory requirements and competition from used cars result in expensive entry level vehicles. Because of the rapid obsolesence of computers the used market isn't a big factor, and there are no regulatory costs, so the entry level with computers can be pushed fairly low. You may even be able to recycle an old monitor.
If some killer ap requiring end computers surfaces, then the equation will shift toward more expensive computers. If you just want e-mail, WWW access, and word processing, you don't need a top end computer. Maybe PC's will become like TV sets -an expensive main unit and a cheaper one or two for the kids. Meanwhile, the foreign market has hardly been touched. |
