If the PC market is doing so horribly, then why can't we get amazing PC's for dirt cheap? - AVS Forum
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post #1 of 6 Old 07-19-2013, 12:21 PM - Thread Starter
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In my local newspaper's business section, I keep reading about how Intel is doing horribly because the PC market it just going down the tubes. Apparently, mass market consumers just don't give a damn about buying a PC anymore. Instead they just get a tablet or something.

So, if this really is the case, then shouldn't retailers end up with tons of unsold stock that they have to mark down to pennies on the dollar just to get it to move ? I haven't seen any of this yet. I'm just wondering if maybe in a few months we will start seeing pre-built machines being sold at rock bottom prices ? I know pre-built is normally not the way to go, but if you can get them for 50 percent off, why not ?

I just haven't seen the closeout sales that I would expect to have seen if the PC market is really tanking like the newspaper says they are.
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post #2 of 6 Old 07-19-2013, 12:41 PM
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Quote:
Originally Posted by Anthony1 View Post

In my local newspaper's business section, I keep reading about how Intel is doing horribly because the PC market it just going down the tubes. Apparently, mass market consumers just don't give a damn about buying a PC anymore. Instead they just get a tablet or something.

So, if this really is the case, then shouldn't retailers end up with tons of unsold stock that they have to mark down to pennies on the dollar just to get it to move ? I haven't seen any of this yet. I'm just wondering if maybe in a few months we will start seeing pre-built machines being sold at rock bottom prices ? I know pre-built is normally not the way to go, but if you can get them for 50 percent off, why not ?

I just haven't seen the closeout sales that I would expect to have seen if the PC market is really tanking like the newspaper says they are.

Because that's the pre-built market. Dell, HP, Sony, etc etc. The general consumer would typically buy the $400-$500 entry level comps, but instead they're buying $400-$500 laptops and tablets. The reason you haven't seen massive deals is because those companies are still churning out laptops and tablets that sell and therefore don't NEED to drop their prices on pre-built desktops, they just manufacture them in smaller numbers.

EDIT: And no, a crappy $500 computer for $250 is still a waste of $250 imo. What are you going to use that comp for? clearly not anything worthwhile as the hardware can't handle it. And in that case, you could buy yourself a Utilite box, or something similar for $99 if all you're going to do is internet, office, etc, and save yourself more money.

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post #3 of 6 Old 07-19-2013, 01:54 PM
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I think you're envisioning a more drastic decline then there is in reality. It's not like these companies suddenly got caught with 100 million units and nowhere to sell them. It's been a steady and forecasted decline since the tablet / smartphones technologies started taking off.

Think of it like the music CD. It's been in steady decline since the internet but it doesn't mean you go into a music store and buy any album you want for 50c. They just reduce their manufacturing to meet the reduced demand and the companies which survive need to find other venues of profit to keep things ticking.

That said, it doesn't mean that these companies aren't felling the crunch, which is I'm sure what the articles were more about. It's not a going out of business, flee the Titanic kind of issue. It's a business is changing and you need to downsize or adapt to the changing market issue.

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post #4 of 6 Old 07-19-2013, 07:36 PM - Thread Starter
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Best Buy and Office Max and places like that also carry a lot of $700 and $800 and $900 type desktops as well. If everybody is just buying tablets and laptops, then I'd imagine that not too many people are buying these pre-built $800 systems. You'd think that eventually the stores would have to clear them out at some point at a huge discount, but I guess HP and companies like HP already know that the demand is super low and they aren't making enough of them to see the closeout deals ?

I know that even most of the $900 PC's wouldn't be very good for a PC gamer, because in all likelyhood, the motherboards would be pretty crappy, and the memory would be the cheaper kind of memory, but they are still putting some relatively expensive intel cpu's inside them...
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post #5 of 6 Old 07-19-2013, 08:05 PM
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Quote:
Originally Posted by Anthony1 View Post

Best Buy and Office Max and places like that also carry a lot of $700 and $800 and $900 type desktops as well. If everybody is just buying tablets and laptops, then I'd imagine that not too many people are buying these pre-built $800 systems. You'd think that eventually the stores would have to clear them out at some point at a huge discount, but I guess HP and companies like HP already know that the demand is super low and they aren't making enough of them to see the closeout deals ?

I know that even most of the $900 PC's wouldn't be very good for a PC gamer, because in all likelyhood, the motherboards would be pretty crappy, and the memory would be the cheaper kind of memory, but they are still putting some relatively expensive intel cpu's inside them...

The problem with that is the rate at which technology improves. Yes, the stores 'eventually' would mark them way down, but by the time that came around, there's going to be better stuff and even general consumers won't bother with the old.

Looking it up, the most expensize 'non-gaming' comp that Best Buy has is an ASUS CM6870-US011S which is $1,200. Aside from the CPU which is an i7-3770 (non-K), the rest is arguably crap. It's got dual 2tb drives, which is ok, but those are fairly cheap and they don't say what brand, 16gb od 1600 RAM, a blu-ray drive, but then they severely hinder the entire system with a 3gb GT640 GDDR3... really? and a lowly 300w psu... I personally wouldn't even look at that system unless it was more than 50% off. it's just not worth it. at half off I could take that $600 and get better parts for my current system.

I don't know what a store's SOP is, but I would assume like most stores these places buy the merchandise and then re-sell it at a bit of a mark-up (I know they sell consoles at cost, which is why employees don't get a discount on them) but with hardware they usually don't sell much higher than cost, so the store just loses money if they mark it down too much. they'd probably get more for them selling them back to the OEM, but idk. Physical goods just never have 'good' deals until WAY past their age of worth.

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post #6 of 6 Old 07-24-2013, 12:41 PM
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Margins on PCs are super tight. There's really not that much fat to cut out and pass onto the customer without just not bothering.

Dell does their quarterly fire sales to clear out inventory, you can get some decent deals there.
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