Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (1975)	12/31/1997 9:17:00 PM
From: ET	Read Replies (2) \| Respond to of 9256

stitch ....veeco article...http://www.industryweek.com/tech%5Finn/profiles/html/twp101697.html

To: Stitch who wrote (1975)	12/31/1997 11:23:00 PM
From: LK2	Read Replies (2) \| Respond to 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).

To: Stitch who wrote (1975)	1/3/1998 12:38:00 AM
From: Mark Oliver	Read Replies (2) \| Respond to of 9256

When Gus says that the trend is toward cheaper faster boxes, I'd have to agree. Last year I spent $5000 on my computer. Today, I'd be surprised if I could justify spending $3000. The main reason, I'd rather upgrade more often. Besides, I've hit a wall where no application I'm using demands more power. Anyway, when you read the following article, you can see that Intel feels the pressure to supply the latest technology at very competitive prices. They are trying to nip the K6 in the bud and push the buyer back into their camp. When you saw them having 60% margins last year, it was practically obscene. techweb.com Intel Slashes Price Of 233 Mhz Pentium II (12/30/97; 3:59 p.m. EST) By Kelly Spang, Computer Reseller News <Picture>Intel Corp.'s 233 Mhz Pentium II processor hit a record low in the open market as the chip giant slashed the price by 33 percent. The move to drop the price of the Pentium II 233 MHz from $401 down to $268 is an attempt by Intel to propel Pentium II down into the heart of the mainstream desktop market. Intel will aggressively drop Pentium II prices throughout the first half of next year, sources said. Intel is scheduled to drop prices in February and May across product lines. The Pentium II 300 MHz, Intel's top of the line Pentium II product , will drop from $738 down to $530 in February and then to $398 by May, sources said. Pricing is in 1,000-unit quantities. By lowering the 233 MHz Pentium II, the entry level Pentium II processor, the Pentium II is priced lower than the 233 Mhz Pentium with MMX which is currently priced at $300. By February, Intel will drop the price on the 233 Mhz Pentium II with MMX to $193. Intel is banking on VARs choosing to go to the newer architecture by closing the price delta between the two processor lines, say industry sources. By May the Pentium II 233 MHz will be priced at $209 while the Pentium with MMX 233 MHz will be priced at $134, sources said.

To: Stitch who wrote (1975)	1/4/1998 1:33:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

Stitch, In agreement with your post, do we really think the current class of PC users who have generally purchased significantly more than a minimum acceptable PC will suddenly begin buying the lowest end with small disks, little RAM, limited upgradability? I suspect they will continue to do what they have done in the past-buy at least a mid-range PC to avoid immediate obsolesence. But they will be able to do it at a lower price and I suspect the trend will be down until PCs have new functionality with much higher hardware demands.