how low can PCs go?

Discussion in 'Hardware' started by dividend, Jul 14, 2005.

  1. 4 years ago i ordered mailorder parts and built my own computer because it was more cost effective and gave me better performance. i never imagined i'd be buying a packaged computer from dell, but here i am.

    if i were to build one today, just the cpu and motherboard would cost ~$300. the monitor would cost ~$300 = $600. that still doesn't include HDD, CD, RAM, keyboard/mouse, ETC...

    yet, dell sells the entire system for (~$600)...

    does dell make any money on these things? something is weird. either wholesale costs are waaaaaay below retail, or prices are going to pop up. but dell shares hit $40 so i cross my fingers and bought a dell... lol.

    how long can PC prices go?
  2. TGregg


    Yeah, I was looking up prices for my mother-in-law the other day, and I could get a decent PC (for web surfing) for $420 with S&H and taxes. Had 256 meg a 2.4ghz Celly, and all the attachments like printer, modem, keyboard, nic, mouse, etc. Even a CD burner they'd never user. And Win XP home.

    And that's $99 for shipping and $26 in tax, before all that it was $300. Geez.
  3. exactly, i mean, even a computer case will cost around $100...
    legit (hehe) win xp is another $100...

    wholesale prices must be half of retail.. or
    these are some weird bargains
  4. Dell does barely better than breakeven on the low-end consumer line. They do well is on the business side and higher-end consumer.
  5. this low
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    Intel® Celeron® Processor (2.40GHz, 400 FSB)

    Microsoft® Windows® XP Home Edition

    17 inch E773 (16 inch viewable) Conventional CRT

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  6. hcour

    hcour Guest

    Technology is amazing. My first hard drive (for a 286-SX system) was 10 megs and cost me about $200. Last week I bought a 512 mb flash drive for $40.

  7. balda


    Intel Celeron 2.4 $60.00
    Mother board 30.00
    case 20.00
    HD 35.00
    video card 20.00
    cdrw 25.00
    ram 25.00

    total 215.00

    What parts are you looking at?
  8. ooh, sorry shouldve been more specific

    intel pentium 4 processor 2.8ghz retails around $150( not including +tax+sh+heatsink+fan), OEM probably can shave about 1/4 off that.

    btw, i think the extra L2 makes a noticible difference bet. celeron and p4
  9. I feel exactly the same way and did the same as you (used to build them myself from scratch, Abit & Asus motherboards). The last 4 computers I got I bought from Dell when they were on sale with coupons/rebates (SC400's). There was no way I could come close to putting together those systems at the price I paid (plus its easier to take a tax deduction a complete system purchase then individual components ordered separately)

    I think Dell's costs are low because of the volume they do and I think from time to time you can get real good deals because Dell just wants to move product out (to keep its volume up & get rid of inventory). Anyone who builds computers from scratch these days does it because they have very specific needs or they just plain enjoy it (e.g. case modders) - I don't think it makes economic sense.
  10. Build was never an option for me: it was always a losing proposition when you added up my time. Today it would be an even bigger loss: buy is actually cheaper in many cases than building - excluding the cost of your time.

    Hardware is very much commoditized and money is made on razor thin margins - much like grocery stores etc ..... Dell and others make more money by selling you non-commodity add-ons and financing and services, and through coopertive marketing agreements....
    #10     Jul 15, 2005