To: D. Swiss who wrote (65881 ) 9/17/1998 10:14:00 AM From: Boplicity Read Replies (1) | Respond to of 176387
Consumers Buy More $1,000 PCs, Fewer High-End Models .c The Associated Press SEATTLE (Sept. 17) - An increasing number of consumers are buying desktop computers for $1,000 instead of shelling out up to three times that amount for high-end machines, a survey has found. In the first quarter of 1997, less than 13 percent of the retail market was made up of sub-$1,000 desktop computers, according to survey data by Ziff-Davis Market Intelligence. That figure jumped to 42 percent in the second quarter of 1998, the survey said. The data suggest that while technology will continue to drive performance up and prices down, $1,000 seems to be the ''trigger point'' at which many people are comfortable, said Matt Sargent, a Ziff-Davis analyst who presented the survey Tuesday at a technology-industry gathering in Kirkland. The average retail price fell from about $1,800 in early 1996 to less than $1,200 in July 1998. The decline, however, seems to be leveling off. The lower prices have lured more first-time computer buyers into the market and raised overall figures on household PC penetration. About 44.8 percent of households now are equipped with PCs, compared with 29.4 percent in 1994, the survey said. ''For a long time, people looked at PCs the same way they looked at stereos and televisions'' - as something they would buy once and hang onto forever, Sargent said. Now, consumers are more willing to ''get into a buying cycle'' and get a new machine every few years to keep up with technology, he said. The decision is much easier when the computer costs between $1,000 and $1,500 instead of up to $3,000, he said, especially when the buyer still gets a fairly powerful machine for the price.Ziff-Davis surveys also showed that mail-order manufacturers such as Gateway, Dell and Micron are claiming an increasing share of overall sales, with PC superstores and so called ''clone shops'' also showing gains.