PC bill of materials articles creeps lower.
Subject: General Tech, Systems | March 31, 2012 - 07:01 PM | Scott Michaud
Tagged: laptops, desktops
ZDNet and others published articles discussing the rising prices of PCs: it needs a grain of salt.
News publications love to publish large stories about how an industry is forcibly altered. For instance, are you sick of stories proclaiming the term “Post PC” yet? It is the season’s fashion to paint darker tones over any portrait of the personal computer.
According to a report from Ben Reitzes of Barclays Capital, certain PC components have gotten more expensive due to a series of recent events. It does not look like such a bleak future, however. Granted, ZDNet and Barclays Capital are both focused on their investment-oriented customers, but still.
As you can clearly see, the PC is doomed.
Image from Don McMillan presentation.
Foremost on the list of concerns is the elevated price of hard drives. ZDNet claims that Apple will have an advantage due to their switch to solid state devices in Macbook Airs and iPads. Apple does not have an advantage -- anyone can put an SSD in their devices, and many PC manufacturers who sell their product for a base price of a thousand dollars do if it suits the goal of the product.
LCD panels are expected to elevate in the near future as OEMs build up inventory ahead of the launch of Windows 8-based products. I am sorry, but come on. Prices of components tend to rise when you abruptly spike in sales. Moving on…
DRAM prices have also risen about 7 percent compared to just a few months ago. My issue is that RAM prices have absolutely plummeted since even just last year. For a PC which costs four hundred dollars, RAM is expected to make up just $15 of that. 7 percent on $15 is, for all practical purposes, a rounding error for a $400 device.
The sky is not falling.