Hi John. Yes, It's been a buyer's market in the PC industry since last year. The primary driver behind popularity of <1K PCs is lack of any killer app. Web access has been fueling the growth in the PC industry, for which <1K PCs are doing just fine.
I hear INTC & MSFT are trying to change that by investing in "3D web" technology. Smart move. 3D by itself never took off but mingling it with the web may help. Need faster pipes which are coming in form of ADSL(US West, GTE), Cable modems, Satellite dish,..... We'll see if they can break the trend.
I am intrigued by "cycles" in life, relationships, nature, stocks, businesses. So, it is fascinating to me that:
PC vendors didn't want INTC to continue its monopoly on processors --->
They pumped up AMD & CYRX and offered cheap PCs--->
Maximized efficiency of mfring operations, & drove small players out ---->
Accelerated creation of sub1K PC mkt ---->
Now seeing ASPs, ARPs, & profit margins drop ---->
And now hoping that MSFT/INTC/?? will create new apps, requiring faster PCs.
This cycle shall continue.
Clint |
