Preview

Computer Industry

Satisfactory Essays
Open Document
Open Document
1253 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Computer Industry
Computer Industry Analysis
"Laptop prices hit new low"

Summary:
The article "Laptop prices hit new lows" by Gary McWilliams focuses on the computer industry, and how prices have evolved during past 5 years, specifically 2001-2005. The article reports that the prices of laptop computers have decrease substantially over the past 5 years.

The average price for a laptop hit a new low in 2005 of about $1000; a decrease of about $250 from last year, and more than $600 from year 2001. In the past the demand for laptop computers comprised only of businesspeople. Now, college students ' demand represents a considerable percentage of the total demand for laptop computers. While in the past a laptop computer was considered a luxury, students having to pay a sizable premium over a desktop computer now prices can go as low as $650 for a laptop equipped with wireless technology. Nearly 75% of the college students who plan to buy a computer next year say they intend to buy a laptop; this compared with about 16% in 2001.

One reason for such a dramatic drop in price is that some of the same components used in laptops are used in other devices. Small disk are used in iPods, liquid crystal displays are now found in TV 's, thus allowing laptop producers to slash their prices and component producers to achieve economies of scale. Another reason is that four years ago only 6.2% of the schools had wireless networks running, now more than 35% of the college classrooms ' have access to wireless networks, thus in the end shifting the demand for laptop computers. Furthermore the new technological improvements in the chip development allows to higher speeds while conserving battery power can be considered when analyzing the change in price for this industry.

Some examples of cheap laptops are: Toshiba 's Satellite M45-S265 at $1,150, Gateway 's 6250GZ at about $950, and the cheapest laptop according to the article Dell 's Inspiration at $558, just $130 more than a equally

You May Also Find These Documents Helpful

  • Good Essays

    Case Study 1 CIS109

    • 865 Words
    • 3 Pages

    The two portable devices that just about everyone has in their home, purse, briefcase and workplace. A laptop and or a tablet. There are a few things to consider when deciding which device to purchase. Price, memory, battery life, display, connectivity, syncing capabilities are all factors to think about. One of the main factors of course is the price. The typical price range for a laptop is from about $275-$1600. (Noblepcs) The average price for tablets is $337. (pcworld) This is of course an average price range there are tablets priced lower than the amount listed. Memory or RAM is another factor that could sway your decision about purchasing a laptop or tablet.…

    • 865 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    BartrugS M1A3

    • 358 Words
    • 2 Pages

    Everyone knows in the day and age know about Supply and Demand. The laws of Supply and Demand are quite simple, when the Demand goes up the price increases. When the Demand decreases the price goes down. In the middle of this all this is called Supply. Ok, you need a Supply of something. In this paper the Supply is a demand for computers for a doctoral student looking for a computer.…

    • 358 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    This paper will give a short history and descriptions of Apple’s I Pad minicomputer. It will also give factors that affect demand, supply, and equilibrium prices in the market. Issues that Apple faces that affect its competitiveness will also be addressed. Lastly, this paper will identify the long term profitability of the iPad including, price elasticity of demand, technological innovation, and cost structure.…

    • 1666 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    With all the companies that were listed, it is easy to see how competition has helped tremendously in keeping prices down. The first computer I bought cost me $2500. It was a Pionex, 512 mb of RAM, Pentium processor, 120GB Hard Drive and a 15inch monitor than could be used for a boat anchor. The computer I have now cost me 1/3 the price. It has an Intel Core I5 processor, 1TB hard Drive, 6 GB of RAM, DVD RW drive, and a 24 inch monitor that weighs about 5 pounds. Now that we have seen that computers are made bigger, better, and cheaper, let’s discuss how they have changed the way some companies do business.…

    • 523 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Mac vs Pc

    • 834 Words
    • 4 Pages

    The sales for Mac laptops have gone up quite a bit over the last few years especially for college age kids. Even though the initial cost is higher most people say that the total cost of ownership is less than that of a PC. Another reason students are switching to Macs is because they are faster and more efficient. College students also like to play around and do a lot projects on their computers depending on their majors and Macs have a variety programs that can accommodate even the most advanced user. Another things Macs have over PC’s is that Macs are more secure and are safer from virus attacks. Mac computers are more efficient, cost effective, and useful to the average college student than PC’s.…

    • 834 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Hp Pavilion vs. Hp Envy

    • 532 Words
    • 3 Pages

    The first computer we chose was the HP Pavilion dv6t-7000 series. This computer and the package included with it will cost approximately $925. This laptop has a web cam, a VGA port, an HDMI port, 4 USB ports, and a memory card reader. The hard drive has 750 GB of memory on it and has 7200 RPM. The graphics are supported by Intel® HD Graphics. It has 8 GB of memory apart from the hard drive and comes with a Windows 7 operating system and cannot be upgraded to windows 8. It is protected from viruses by Norton Internet Security and has a battery life of 7 hours and 45 minutes. The package that is included in the price of this laptop includes Microsoft 2010 Home and Student, an HP x4000 wireless mouse, and an HP Photosmart printer. It is compatible with most programs including Microsoft Office and several other useful programs. This laptop on its own isn’t extremely impressive, but together with the package deal it is a very frugal choice.…

    • 532 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    A If The Price Of Natural

    • 425 Words
    • 3 Pages

    A. If the price of natural gas, a resource used by manufacturers throughout the United States, were to double, the cost of production of notebooks would most likely increase as well. This would then lead to a decrease in supply (a shift to the left).…

    • 425 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Abstract—Recent works have indicated that the price of computers is a key factor in explaining the growth of computer spending. However, it remains unclear whether the price elasticity of the demand for computers is constant over time. Findings on the pattern of price elasticity will have important implications in the study of information technology (IT) innovation diffusion. To test the hypothesis of dynamic price elasticity, we extend existing growth models to include a price factor with different elasticity specifications. Nested specifications of three growth models were tested using spending data from 1955 to 1984 adjusted by a quality price index for computers. The results indicate that three out of four competing models depict dynamic price elasticity over the investigated period. A similar pattern is also observed when the models are estimated using more recent data on mainframe computer spending. Our results underscore the dynamic behavior of price sensitivity in computer spending over time. They offer a new perspective to study innovation attributes and to examine their impacts empirically over time. Implications for information systems (IS) management and IT suppliers are also discussed. Index Terms— Computer spending, growth model, innovation diffusion, price elasticity.…

    • 9020 Words
    • 37 Pages
    Powerful Essays
  • Good Essays

    Every time I do the math, though, I come to the conclusion that the cost of Macs is not out of line with that of similar Windows machines. Apple is not selling $750 notebooks for $1,500 — its portables tend to have aluminum cases rather than plastic ones, are typically thinner and lighter than garden-variety laptops and run longer on a battery charge than many of their Windows brethren. You will find when you compare specification to specification, the Mac systems come out less expensive almost every time.…

    • 806 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Overall productivity has slowed significantly since the early 1970s and measured productivity growth has fallen. White collar productivity statistics have been essentially stagnant for 20 years.…

    • 511 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    SAS Master Case Study 2

    • 416 Words
    • 3 Pages

    Some key questions need to answer by deep diving into to solve the case Pricing - Are prices changing? 1. Does Laptop price with time? 2. Are prices over retail outlets consistent?…

    • 416 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    New mini laptops are expected to sell in the region of 5.2 million units by the end of 2008, 8 million during 2009 and up to 50 million by 2012 - a ten fold growth. Industry analysts are torn whether or not subnotebooks will cannibalize the laptop market, some suggesting that a mere 10% market share will be taken. However, in this economic downturn, people will always look for cheaper products and with mini laptops available from £150-200, perhaps there is a big market after all.…

    • 487 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In 2013, the touch screen market was featured with fierce price war and far lower demand for touch screen laptops than expected.…

    • 737 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    HCL LAPTOP MARKET CHALLENGES

    • 19986 Words
    • 80 Pages

    marketplace. Traditionally, consumers preferred desktops due to lower costs. However, in 2008-09, consumer preference started shifting to laptops because of the mobility advantage and the falling prices of laptops leading to an exponential growth…

    • 19986 Words
    • 80 Pages
    Powerful Essays
  • Good Essays

    Green Revolution

    • 2086 Words
    • 8 Pages

    Laptop computers generally cost more than desktop computers with the same capabilities because they are more difficult to design and manufacture.…

    • 2086 Words
    • 8 Pages
    Good Essays