PC Prices Finally Stop Falling Thanks To Lower Inventory
TOKYO (Nikkei)-There is a growing sense in the personal computer market that retail prices have finally stopped falling, industry sources said. This is partly due to inventory reductions by manufacturers and distributors.
Popular new desktop models in the Akihabara district of Tokyo, for example, still sell for around 200,000 yen, the same as six months ago. The district is famed for its discount electronics.
NEC Corp. (6701) and other PC makers have come out with lots of new winter models, and the latest models have maintained their sticker prices. This is quite different from the end of last year when prices collapsed.
During the end of the year commercial rush in 1997, prices of some types of PCs fell by nearly 20% due to growing inventory on a worse-than-expected demand slump and efforts by companies to reduce excess inventory. Having already made the necessary inventory reductions, manufacturers and distributors reached optimal levels around April, says a spokesperson for Toshiba Corp. (6502)
Another factor boosting PC sales was the release in July of Microsoft Corp.'s Windows 98 operating system.
The going rate on notebooks is roughly 260,000 yen. Notebook prices will fall no further, says a spokesperson for Fujitsu Ltd. (6702)
Total PC sales value in October at 3,300 large outlets who belong to the industry association grew 42.6% from a year earlier, the association says
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