<My question (don't know the answer): How many people actually go into the store that is advertising an $800 system and walk out having spent only that much?>
Excellent question, and one that should have been answered by those who designed the <1k systems.
My answer is that most users have had some previous experience, primarily from the work place or school. In that most commercial systems are feature rich, I many buyers will not willingly accept a downgrade for their homes. Keep in mind that the basic software, Word, Excel, etc. is probably copied form their daytime machines causing them to have at least the same horsepower.
If I were to buy an $800 machine, I would probably buy for my daughters future use (now 2 years old). However, why should I buy new when I can pass mine to her.
The other side of the coin is seen with a little noticed announcement during the AT&T Armstrong earnings announcement. He not only projected telephony over the net, but just as importantly a discount to those customers who were willing to accept billing via the web. Retail billing for any major corporation is a major expense. If they can reduce that expense through Internet billing and collections (VISA/MC), some (Telephone, electric, retail accounts, etc.) may pass those savings to the customer. In essence, another reason to have a home computer. As others have said on this thread, the home PC will become as necessary as a refrigerator.
Mike Gordon |
