Computer Industry

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Computer Industry Analysis
"Laptop prices hit new low"

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...
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