The PC myth

The PC myth is "if you build it they will come". If you build a faster PC, everyone will toss their existing home PC and buy the faster one. That may have been true when you owned a 486DX based PC, but once Pentium based PCs reached 333 MHz, there was hardly anyone who needed more speed to run MS Word, Excel or Power Point just to name a few.

Intel, and all ther PC manufacturers whose products are based on the Intel processor, believe that all they need to do is announce a PC with the latest 1 GHz processor and they will simple fly off the shelves. Dell, Gateway, IBM and Compaq need to face a reality. The growth in PC sales at the last few years rate, is over. The only buyers out there, now that the market is saturated, are the few who haven't yet bought one yet and will probably by a low end model with a speed below 500 MHz.

The shakout in the PC market is due and I expect it to occur next year when sales have continued to sink and profit margins become razor thin. Whoever the winner or winners are is hard to tell. Deep pockets may be the deciding factor.

11/30/00
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