Price of laptop computer drops to $1,000: This is good news.
The Wall Street Journal reports the average price of a laptop is now about $1,000, down from $1,250 last year and $1,640 in 2001.
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Good news for us, at least. This morning, I drove past the abandoned carcass of a Gateway store. It's hard to imagein that there is much profit in a $1,000 laptop.
I don't think it will be long before the profit margin on core PC hardware goes away completely. Dell simply cannot be making money on a $299 system. All their profit has to come from add-ons -- the PC itself is rapidly becoming a loss leader.
That's why I think Lenovo was crazy buying IBM's PC business. Without surrounding product lines to make money, there's just nothing there. The actual PC product line is almost simply a barrier to entry for selling the accessories.