http://hardware.silicon.com/desktops/0,39024645,39151603,00.htmThe number of PCs shipped worldwide will grow this year and next but PC makers are expected to take in about 0.4 per cent less in sales in 2006 from the $202.7bn predicted this year, according to a new report by Gartner.
The research firm said PC unit shipments are on pace to grow 12.7 per cent to total 206.6 million in 2005 and will increase 10.5 per cent to hit 228.29 million in 2006.
The statistics underscore the pricing pressure that's squeezing PC makers even as demand for their computers continues to increase.
Prices for a basic desktop set-up have hit rock bottom. CompUSA, for example, advertised a special this weekend for a $199.99 HP Pavilion desktop with a monitor after about $370 in rebates. Dell has been offering entry-level Dimension desktop computer bundles for $299 for some time, and desktop PCs priced at $399 are becoming more commonplace.
Price cuts are ordinary in the PC world but the recent price wars have forced vendors to look for even the most minute cost-cutting measures, according to the Gartner report.
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The ASP on PCs has been dropping for quite a while. That was why my last employer "downsized". As the selling price gets squeezed so does the quality of the components that go into them. We used to build a top quality machine, but slowly they evolved into cheap junk as the purchasing decisions revolved around price alone - didn't matter if it couldn't pass my compatibility testing. I had to lax my testing criteria. :eyes:
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