LEE GOMES, The Wall Street Journal, reports:
Dell — which wasn’t even the first PC maker to take the step — last week was offering for $299 a Windows computer that had most of what a beginning user would want. That list includes a 17-inch monitor, a 2.4 gigahertz Celeron processor, 256 megabytes of RAM and a 40-gigabyte hard drive.
A nearly identical system a year ago cost $499, and while it had only half as much RAM, it did provide speakers. The newer, cheaper model doesn’t have any, but you can add a pair for $20.
Besides reflecting a remarkable price decline of 40% in 12 months, the fact that computers can now be had for less than $300 means they have officially entered into the territory of “consumer electronics,” at least under one set of industry rules.
Ten or so years ago, when PCs cost five or even 10 times what they do now, it was common for analysts to say that they would never become a staple in homes until they were priced the way consumer electronics were, usually defined as costing less than $300. In the days when PCs were $2,000 and even more, that target seemed to be something of a fantasy.
Now, PCs cost less than some telephones — and less than a lot of TV sets — and can be found in roughly three-quarters of U.S. homes. But while they are priced like consumer electronics, the machines still aren’t even remotely as easy to use, and the trend lines there aren’t particularly encouraging. In fact, with price no longer as significant an issue, the continuing complexity of computers may become the biggest contributor to any “digital divide” between digital haves and have-nots, especially involving access to the Internet.
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