Until now Moore's Law [the 18 month Techno-Chip Market Cycle] has ruled Intel and the computer industry. With bigger, faster -and- better, chip and hard drive evolution stimulating the market from the -top- down. Throughout the industry has held it's basic top -of- the line DeskTop PC prices constant.
Evolution And Peripheral Creep:
The balloon stays up so long as everything stays hot; bigger, faster -and- better, for each yearly market cycle. However, the evolution of chips and hard drives has only partially supported the market and prices. To maintain their position peripherals have been added to support the price and market cycle.
In the meantime, mid-range computers have been unable to hold their basic price. Slowly falling from $2,000 to below $1,000.
The top of the market user is already identified, established, and committed by marketing to the annual Techno -Chip- Race. The bottom of the market non-users are an unknown commodity, unidentified, uncommitted and un-marketed. These unknown non-users have the greatest potential for market growth.
At the top of the market, Intel is expected to present the next generation chip series which will follow their Pentium 400+ chip. With a new and coming series, Intel should be secure at the top of the line for some time.
At the middle of the market, Intel is expected to announce a new all -in- one processor. Which will place a number of computer motherboard functions directly inside the chip. The chip will cost less, do more, and run at mid-range Pentium speeds. The theory is this will encourage computer manufacturers to build lower priced computers with Intel chips. Hopefully this will be more successful, functional, and economical, than when Packard Bell hard wired their functions to their proprietary motherboard. Loose a fuse and you lost the whole motherboard with everything on it.
From the bottom of the market, Microsoft, is moving up. Committed to Web TV and the lowest common denominator in television, computing, and price. While Microsoft improves its' networks and services, the right chip, at the right price, could only make it better.
Contrary to popular market expectations PC computer market sales are still flat for the second quarter. Meanwhile worldwide Mainframe "Fixes" run behind, as well as count less numbers of PC DeskTop Networks in need of a "Fix".
Among PC Networks and users it is every user for themselves. There is no mass rescue from industry. For most PCs the fix will at best be Do-It-Yourself.
Among individual PC users the popular hope has been the industry would fix it for everyone. For PC Networks the hope was they could buy their way out of their year 2000 problem. By purchasing all new computers and software with the year 2000 "Fix" in the chip as well as in the program software.
By Mid Year 1998, PC replacements in government, institutions, business, and commerce systems, sales should have begin to increase as they start buying their way out of the year 2000 problem. This should have increased demand as well as raising prices for top -of- the line PC DeskTops. So far July, 15,1998 no sign is seen.
However, some market watchers are now concerned that if you don't buy early; it may already be too late. With Asia in economic crisis, there may not be enough worldwide capacity and ready made computers in production to fill the gap. Meanwhile, internationally, the price of Non-Intel processors and memory chips has dropped. International currency and exchange rates are further driving down foreign made computer prices and parts.
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