Why are compuers so cheap?

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poop
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Why are compuers so cheap?

Post by poop »

Seriously, why?

When I started playing around with computers (late 80's), a decent computer would run you at LEAST $3000. That continued right up until a few years ago. Then, around '98 or '99 computers started getting CHEAP. Now, for under $1000, you can have a really nice system. What gives?
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renovation
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Post by renovation »

its called supply and deman - also the manufactures are using a lot of the same parts just with modifacations to them !
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DirkBelig
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Post by DirkBelig »

What are complaining about?
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Hipnotic_Tranz
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Post by Hipnotic_Tranz »

It's probably the fact that they have become so mainstream. that and supply/damad. There are many more made than probably even needed so that drops the price. If you still need a really nice system with a monitor, speakers, everything, it'll still run you ~$1,500-2000. But your right, if you spend $3,000 then you're gonna have one bad machine!
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Jim Z
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Post by Jim Z »

- PCs have become commoditized
- The two main CPU suppliers are trying to kill each other in a price war
- memory is cheaper than dirt

I'd say #2 is the key... Time was that the CPU was one of if not the most expensive component.

It all boils down to competition. Don't believe me? Look at Mac prices...
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Solstice
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Post by Solstice »

It also has a lot to do with the current state of the economy. Tech companies are taking a beating these days. With demand falling off sharply for computer equipment, especially in corporate IT budgets, PC vendors are having to reduce prices. AMD dragged Intel into a price war. SDRAM prices have also dropped through the floor bringing RDRAM and DDR memory down as well. We are also seeing cheaper flash memory prices. Since flash memories are used in everything from motherboards and MP3 players to disk drives, this translates into direct savings for the customer.
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