PC prices to take a plunge this holiday season

Microsoft’s decision to ship the retail version of Windows Vista after the holiday season will wreak havoc on PC prices, according to the Wall Street Journal. Despite the Vista upgrade coupon scheme now offered by many PC makers, the WSJ says “the normally healthy holiday season might look like a going-out-of-business sale.” The flurry of expected price drops will be an effort by PC makers to coax customers into not waiting for Vista’s January 2007 release before buying new machines.

Current Analysis, a research firm that tracks weekly PC sales, estimates that, thanks in part to Vista’s delay, 70% of notebook PCs sold this holiday season will be priced at less than $1,000. That compares with just 38% of notebook PCs at less than $1,000 in 2004. “It’s going to be a blowout sale,” says Samir Bhavnani, research director at Current Analysis

At electronics retailer Circuit City Stores Inc., the price of 17-inch-wide notebooks is falling to less than $1,000 from about $1,300 a year ago, says Elliot Becker, vice president and merchandising manager of technology. In September, Sony Corp. started offering its N-series notebook at less than $1,000 for the first time.

The WSJ’s report comes just days after research firm Goldman Sachs said it expected motherboard shipments to be significantly below expectations last month. The Gartner research group was also recently quoted by the Taipei Times as saying Vista’s delayed release may cost the PC industry a staggering $4 billion in sales this year. Thanks to The Inquirer for the link.

Comments closed
    • MadManOriginal
    • 14 years ago

    Unless it affects component pricing I could care less. Low-end notebooks or complete systems sold cheap means nothing to me.

    • tesmar
    • 14 years ago

    What were the stats for 2005 of notebooks below $1000? And did the people buy those notebooks, or was that just the percentage of laptops that were priced at that point?

      • Ragnar Dan
      • 14 years ago

      The way I see this story, the WSJ had some copy to fill, and this is what they came up with to do it.

      Mobile computer prices have declined rather steeply in the last number of quarters, and the sub-$1000 category has started to include some rather nice machines, compared to how it used to be. I don’t see the Vista thing as that significant in what’s going on.

    • crabjokeman
    • 14 years ago

    Computers are already relatively cheap, except for memory prices.

    Any chance DDR2 prices are going back down to a reasonable level?

      • Krogoth
      • 14 years ago

      The memory cartel has the whole industry by the balls and the demand from C2D enthusist does not help the stiuation ether.

    • Krogoth
    • 14 years ago

    The problem is that majority of current average joe rigs are more then powerful enough to fulfil his/her needs.

      • d2brothe
      • 14 years ago

      Heh…my dad is still running a P3, this is good news for me…:D

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