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PC Prices Keep Going Down, Sales Expected to Increase

by Terrence O'Brien on March 12, 2009 at 07:03 AM

PC Prices Keep Going Down, Sales Expected to Increase

With the recession pushing prices of everything down, and with low-priced netbooks' newfound popularity, the research firm IDC is reporting a much larger than normal drop in the average price of PCs. On average, computer prices drop about five-percent per year, but, in the fourth quarter of 2008, prices dipped a dramatic 14.3-percent.

Only once before have prices of computers fallen faster; following the burst of the Internet bubble in the fourth quarter of 2001, they fell 14.5-percent. Another research firm, iSuppli, sees costs continuing to drop, as much as 10-percent in 2009. As consumers increasingly favor netbooks, which usually rest in the $300 to $600 range, more established manufacturers worry that consumers may significantly drive down the prices of their laptop and desktop PCs, according to one expert. "What's concerning here is, [netbooks] could potentially reset consumer expectations of what you pay for a notebook," IDC's Richard Shim told Business Week.

Ezra Gottheil of Technology Business Research, however, believes that lower prices could spur more purchases. With some netbooks having been found at Radioshack for a mere $99 (with a two-year contract from AT&T), such deals may become more popular as people flock to the idea of mobile Web browsing. Accordingly, iSuppli expects that, even in this troubled economy, the downward trend of prices should lead to a 12-percent increase in mobile PC sales. So maybe there is some light at the end of the tunnel for PC manufacturers. [From: BusinessWeek]

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Tags: business, economy, netbook, PCs, prices, research, retail, shopping

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