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Falling prices, increase in sales makes PC buyers and sellers happy

21-October-2002
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Falling prices, increase in sales makes PC buyers and sellers happy

Both computer buyers and sellers have reason to be happy. With the price of computers hitting new lows, sales are up marginally in the first half of this fiscal compared to last year. Although no clear numbers are available yet, there are enough indications of the rise in offtake.

Assembled computers have never been so affordable and the prices will continue to slide for quite some time, market experts say, adding that the offtake is marginally up this year. A computer with top-of-the-line configuration (Pentium4 2Gb processor, 128 Mb RAM, 40 Gb hard disk with all standard components) can be brought home for anywhere between Rs 30,000 and Rs 35,000. However, a comparable configuration computer used to cost between Rs 35,000 and Rs 40,000 last year.

The main reason for the fall in prices - to the tune of Rs 5,000 per computer in last two to three quarters - is the substantial reduction in prices of peripherals like monitors, hard-disks, keyboards, etc. Even the prices of optional add-ons like CD-ROMs, UPS and desk jet printers have also plunged in last few months.

The market sources also point out that total cost of ownership for a computer has also come down substantially as the add-on peripherals like printers and UPS systems are much cheaper now.

Increased competition from AMD processors and Linux operating system in a market that was almost monopolised by Intel and Microsoft, is also bringing down the prices.

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