My prediction on Computer Hardware Pricing

[Richard_Cranium72]

Mid-Range computer parts are as cheap as I've ever seen.

I just ordered a neat mobo and a 64mb stick of ram for a "C" note SHIPPED..!

So what's this all about you say.???

I've seen several reports lately that indicate a mass bleeding of Red Ink in the on-line computer and parts industry.

One report stated that 2 of 3 on-line stores are running in the red.

Much like old ValueAmerica, many stores are selling Below Cost.

Even without losing money, the profit margins are "Razor Thin", equating into a non-profitable business.

We all know the law of "Supply and Demand"
If the supply exceeds demand, prices drop and the reverse is true.

Do we have any Economy wizards here to shed some light on the subject and perhaps give some insight to a moron like myself http://sysopt.earthweb.com/forum/smile.gif

I predict prices to rise !!
later gang
DrVette

[This message has been edited by Richard_Cranium72 (edited 11-19-2000).]

[Richard_Cranium72]

What !!

NO ARGUMENT,

NO,, You're FOS ??

NADA, NOTHING ??

[canit]

OK I'll try. I think ram is cheap because the manufacturer's want to unload their stockpiles before the double datarate stuff comes out. As for the other parts everything has come down in my area except the Asus and Abit socket A boards(they're still overpriced $215Cdn and up-Arrgghhh!.) I never usually buy online because there are no Cdn. online stores that I have found to be cheaper than the local stores.

[Banti]

Attn. Richard_Cranium72

I argue, and you are FOS.

That is all. http://sysopt.earthweb.com/forum/smile.gif

Banti

[codybear]

FOS?? explain please

I happen to think he is a DNG...

[Ted61]

Dr Head,

Do you remember your economics class?

We had a racing economy with screaming growth with little hard asset growth. Which is a fancy way of saying the economy is charging ahead with paper gains.

Slim profit margins mean selling lots of stuff. That works great when people are buying but when a slow down comes it hits hard.

We might say it is a ripple in the economy or Ted is FOS.

Ted

[Dave2]

I noticed that SDRAM prices are going up again.

[phecky]

The free market at work. This on-line buying is so new that everybody is in a price war of sorts. It's great for us consumers but I foresee a time when the small indies get swallowed up by the major players. Or more and more manufactures start selling on-line thenselves and cut out the middle man.

[Richard_Cranium72]

In addition to other woes in the on-line retailers, here's another sad tale of sorts->>


"Onvia.com
their website has a "not currently offering products while we transition our business" message where their products used to be.
Firstsource aka Inpower was handling fulfillment for Onvia as well as other outsourced stores. Someone in customer service reported that they are on hold with their suppliers. Beware! "

Egghead.com Cuts More Staff
http://www.internetnews.com/ec-news/article/0,,4_736411,00.html


Vertical vs. broadline e-tailers: which will survive?
http://news.cnet.com/news/0-1273-210-3287258-1.html

I've run outta time to complete this,,

[mondayz]

no second opinion on this one doc...buy now or forever hold yer peace!
I think prices will not only go way up, there will be a very limited selection too.
we'll all be spending our time doing non sensical strings in sysop community...oh behave

[M_Six]

Whew! Just got my new IBM Deskstar from Onvia last week. I was thinking of buying another. Thanks for the heads-up, Doc.

BTW, I think you're right. One of my suppliers here is barely sqeaking 2 or 3% over cost. You can't operate for long that way. There'll be a major shake up soon and the winners will be raising their prices as soon as the dust settles.

I think canit is also right. The RAM nosedive is due to the emergence of RIMMs in many new machines. PC100 and 133 RAM is going the way of the dodo bird.