Retail PC price battle moves lower as sub $600 PCs take off

Retail PC price battle moves lower as sub $600 PCs take off
Tom Foremski
PCs selling for under $600 are quickly grabbing a significant proportion of US retail sales according to US market research firm Infobeads.
The sub-$600 PC category has displaced the sub-$1000 PC segment as the fastest growing segment of the PC market as continuing lower prices for microprocessors, memory chips, hard drives, and other components push down PC prices to new levels.
InfoBeads says that its recent survey of US retailers shows that sub-$600 PCs represented 20 per cent of sales in January. Microprocessor supplier Cyrix is dominating this low end PC segment with its Pentium compatible microprocessors. Infobeads says that the dominant PC manufacturers will have trouble making money in this segment of the PC market because of their much high overheads compared with smaller vendors.


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