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To: StockMan who wrote (50731)3/18/1998 12:13:00 AM
From: Jim Lamb  Read Replies (1) | Respond to of 186894
 
zdnet.com



To: StockMan who wrote (50731)3/18/1998 12:15:00 AM
From: Jules V  Respond to of 186894
 
More on sub $1000:
techweb.com

Meanwhile, in the home market, the sub-$1,000 PC
is taking off, but not in the way PC vendors expected.
A new report from Computer Intelligence Infocorp
(CII) found that while some households with less
disposable income did go for the sub-$1,000 PC,
more families went for PCs in the $1,000-to-$1,500
range.

Consumers don't consider only price when buying a
PC, according to CII, as many are concerned their
bargain computer will become obsolete "in a New
York minute." The fear of obsolescence is "palpable"
among first-time buyers, the report said.

The other surprising finding is that while low-cost PCs
attracted families in the lower income strata, it also
attracted first-time buyers who could afford a
decked-out PC but couldn't justify a $3,000
purchase, according to Matt Sargent, an industry
analyst with CII.

"What we're seeing is a lot of people who didn't have
a reason to buy a PC before [making a first
purchase]," he said. "The people who could afford it
are saying they couldn't justify it at $3,000, but at
$1,000, they could."

So in terms of luring new buyers, the low-cost PC did
what it was supposed to do. "It's turned the market
on," Sargent said. "They needed something new to get
the market going and that's what it's done."