PC bill of materials articles creeps lower.

Subject: General Tech, Systems | March 31, 2012 - 07:01 PM |
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.

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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.

Source: ZDNet
April 1, 2012 | 04:00 PM - Posted by Anonymous (not verified)

Why do people keep beating the "DEATH OF THE PC" drum?

April 1, 2012 | 05:54 PM - Posted by Scott Michaud

Because both industry revolutions and Apple are big stories, and Apple started the drum beat. True or otherwise.

April 2, 2012 | 02:39 AM - Posted by Megaman1221

The other day in class someone remarked "the laptop made the desktop obsolete, just like now the iPad is making the laptop obsolete"

Got a kick out of that one.

April 2, 2012 | 04:50 AM - Posted by Anonymous (not verified)

oh yea? ............. *reading this from his desktop*

April 2, 2012 | 09:33 AM - Posted by Gunbuster

The PC makers have no excuse. Every single new PC/Laptop sold from here on out should have at minimum a hybrid drive or 20gig SSD cache drive.

If you want to keep up with apple it's a no-brainer that you need to include the component that gives you an order of magnitude increase in performance.

April 2, 2012 | 03:59 PM - Posted by Anonymous (not verified)

Nothing has made anything obsolete, you just have more choices now.

I saw a stat that tablets(android) have a high return rate, because they are sold as the end all be all... then the user finds out otherwise then returns it for a laptop. Of course this isn't true of ipads cause OMGOMGMG ITS APPLE and the buyers of those product probably face east and bow before it twice a day. OOHMMMMMMMMMM STEVE IM FOLLOWING YOUR ORDERS OHHHMMMMMMMM AMEN.

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