Released: August 14, 2006

Personal computer prices hit new lows

Source: By Michelle Kessler, USA Today

PC (personal computer) prices are hitting historic lows this back-to-school season. Low-end desktops are appearing in stores for as little as $299. But the hot sellers are laptops, which account for about 60% of PCs sold, says laptop analyst Samir Bhavnani with researcher Current Analysis.

Average laptop prices have finally dropped below their traditional floor of $1,000, and bargain models can often be found for less than $399, Bhavnani says. Office Depot recently advertised one for $279, though it had to be special ordered and shipped for an extra $70.

Prices are expected to stay low into the winter holidays, says tech analyst Stephen Baker at researcher NPD. “It’s going to be another great (shopping) season,” he says. “Everybody will be out buying (laptops).”

Computer deals almost always get better each year. Technology improvements allow PC part makers to continually churn out better components for less money. But this year’s bargains are especially good, because chipmakers Intel and Advanced Micro Devices are in a price war. They make the processors that account for about one-fifth of a PC’s cost, Bhavnani says.

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