I disagree the "high-end" machines will decrease
Low end $1,000 units are growing, but they are not taking away market share from $2,000 or $3,000 systems, they are simply making a WinTel computer more affordable for a wider audience of consumer. You have a secretary who can now get a nice computer for her kids that she could not afford before, but you also have the manager she supports upgrading his machine to run the latest 3D games with Internet multi-player support this Xmas. You also have corport desktops running Office Suites, Intranets, with their in house applications simultaneously, and those $1,000 machines we keep hearing about just won't cut it. Those $1,000 machines are possible with more competition and clearing out of older technology stockpiles of components. It's easier to sell your old stuff at cost to that market, then to take a big write off, so component makers are thrilled. QNTM simply does not address that market, but the end that I would argue is not shrinking, but is the last bastion of profitable business. I don't think you will see WinTel PC's at $500 as that is the realm of so called NetPC's or smart cable boxes. You may just see better technology or bundles in the $1,000 sweet spot, as you currently see in the $2,000 range. |
