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Technology Stocks : Disk Drive Sector Discussion Forum
WDC 242.00+8.5%1:29 PM EST

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To: Stitch who wrote (1975)12/31/1997 11:23:00 PM
From: LK2  Read Replies (2) of 9256
 
>>The trend is clearly toward cheaper and faster boxes<<

I think what Gus means is that, the average selling price for PCs is dropping at a faster rate now than in years past.

Not only do you get more bang for the buck, but you are also paying less bucks.

Before, the strategy of PC makers was to increase the goodies you got each year for the same average selling price (faster CPU, larger hard drive, etc.).

But this year, not only are you getting these extra goodies, but the average selling price is dropping as well.

So what's new is not that PC/hardware prices are dropping, which is what they've always done, but that they are dropping at a much faster rate--at least for now.

-LK

PS: what I'm saying is not really 100 % accurate. The historical trend of PC average selling price was down, over the years. And over the years the same amount of dollars would buy a lot more hardware as time went on. What's changing today is the rate at which the average selling price for PCs is dropping (which is due in large part to the sub-$1000 PC).
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