I disagree with that analysis--it is pretty short sighted, IMO. In the ripeness of time, cheap PCs will be good for drive makers. True the drives that come with them are, well, cheap! And have lower margins. But these will, I think, mostly expand the market, not shrink it. The low capacity drives will soon enough prove inadequate for most people as they add more software, games, etc. Then they will upgrade their drives and their memory. Or they will buy a newer system with a bigger drive. As people become more comfortable with computers, they will want a more powerful one.
The 1 gig or so drives that come with these sub 1000 PCs will not be adequate for much next year, and certainly not the year after. As remarkable a statement as that is for anyone who was buying PCs 2 or 3 years ago. |
