PCs in Pieces
Written by Greg Rudabush, VisionQuest 2000 Vice President and Greg Falzon, StoreBoard Product Manager
Did you ever wonder what people really get when they buy one of those now infamous "Sub $1K" PCs that have saturated the ads? Well, they usually DON'T get a monitor for that price! Our research shows that nearly 80% of PC's priced below $1000 do not include a monitor in the advertised price. Yes, the ads always picture a beautiful computer display along with the PC. And a very attractive price printed in bold letters. But on closer inspection, the fine print usually whispers "monitor not included" or "monitor sold separately."
Nearly 80% of these "Under $1000" machines go out the door with a monitor purchased separately, or a display is purchased at a later time. "Tightly coupled" monitor sales (monitors sold in conjunction with, and at the same time as, a PC purchase) usually take place with the PC purchase. Our research indicates the vast majority of consumers -- fully 70% -- who buy a monitor to go with these PCs will select a 15-inch display. Another 16% will buy a 14-inch unit, while the remaining buyers (14%) will take home a 17-inch size.
When you add it up, here's what people really spend, on average, when they buy a $999 PC and a monitor to go home with at the same time:
w/17" monitor.....$1,200
w/15" monitor.....$1,140
w/14" monitor.....$1,120
Note that the price point of Apple's new iMac correlates closely with the price points in the chart above. The attraction of the iMac -- and its price point -- is built around its highly integrated design. Putting the monitor and processor in the same physical package lets buyers simplify their selection. It cuts anxiety out of the purchase decision formula. And the "grab and go" crowd doesn't have to spend time picking out a monitor after they've just spent all their energy deciding which computer to buy. That's the value proposition. Looks like it's working so far.
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