Are cheap computers for you?
Full-featured desktops costing less than $1,000 are the latest rage
By Doug Harper -- Industrial Distribution, 4/1/1998
When Henry Ford introduced his Model "T" in 1908, his goal was to produce a car that the average American could afford.By the time the "T" was finally replaced by the Model "A" Ford 20 years later, more than 15 million had rolled off the Ford assembly line, making it one of the most successful models in the history of automobile production.
Today, a situation somewhat analogous to the introduction of Ford's Model "T" is beginning to emerge in the PC marketplace as some of computerdom's biggest names are engaged in a scramble to market PCs that cost less than $1,000. And in its own high tech way, the growing availability of relatively inexpensive PCs may be as revolutionary as the production of the Model T.
The movement started early in 1997 when Compaq introduced the Presario 2100 with a suggested retail price of less than $1,000. At the time, Compaq's competitors scoffed and called the 2100 a loss leader, but the computer was an immediate success. Although the 2100's monitor was an optional extra, unlike stripped-down "bare bones" computers, the PC was powered by a 133 MHz microchip, came with 24 megabytes of installed RAM, had a 2.1 gigabyte hard drive and an 8X CD drive.
Although Compaq had a virtual monopoly on the under-$1,000 market when it introduced the 2100, by the middle of last year the competition had jumped on the bandwagon. According to Computer Intelligence, a market research firm, PCs that cost under $1,000 now account for about 40 percent of all retail sales. That number is expected to increase significantly in the next 12 months.
Although the "subzero" -- as under $1,000 PCs are designated in the trade -- market was originally created with consumers and students in mind, once the Genie was out of the bottle, small offices/home offices and corporations began clamoring to share in the spoils.
How significant this outpouring of inexpensive PCs will be to the average distributorship remains to be seen. Most industrial distributors will probably not be willing to entrust mission critical applications such as payroll or inventory to a machine that costs less than a good wristwatch. Nor do most subzero machines have the processing power for industrial-strength spreadsheet crunching or the speedy graphics necessary for CAD/CAM.
However, that still leaves numerous routine business tasks such as word processing, EDI, and e-mail for which the machines are ideally suited. In fact, PCs are finally beginning to fulfill the futurist's dream of a computer on every desk, which could significantly enhance productivity. From custodian to shipping clerk, there is virtually no job description in a distributorship that could not benefit from access to an inexpensive computer.
And they continue to improve. Compaq has already upped the ante by selling Presario models with a 200 MHz Intel chip or a 233 MHz AMD chip for under $1,000. Compaq also offers the Presario 2200 with a 180MHz microchip and a monitor which has a "street price" of under $1,000.
Not to be outdone, AST's Bravo MS 5166 features a 166 MHz Pentium chip, 32 megabytes of RAM and a 3 gigabyte hard drive, all for less than a $1,000 street price. Acer, Packard Bell, NEC and others have also introduced bargain PCs within the last 12 months.
Even venerable IBM has bitten the bullet and come to market with its "300" Series, which includes a PC330 with a 166 MHz processor and 2.5 gigabyte hard drive being sold sans monitor by some vendors for as little as $700. Big Blue also offers a PC330PL with monitor and 200 MHz Intel Pentium chip for less than a grand.
The bottom line is that PCs are finally beginning to fall into that category whose very name strikes terror into the hearts of most distributors: a commodity.
Regardless of how much you paid for your computer, you can use it to send your comments to dharper@interport.net.
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