Infobeads: …Sub $600 PCs Account for Over 35% of Retail Sales in July

“How appropriate is it that on the same day Intel VP Pat
Gelsinger is quoted in an article from ZD Net as saying that PCs
are not likely to fall beyond the $400 price level, I received my
StoreBoard channel report for July retail sales telling me that
sub-$600 desktops accounted for an incredible 41% of unit sales
up from 5% in March? … InfoBeads has been closely watching
the rapidly growing sub $1,000 market, but even someone as
bullish as me on low-cost PCs is taken aback by the rapid advance
of the sub-$600 market.”

“What is even more surprising than how quickly sub $600-PCs have
grown is who is behind this growth. AMD and Cyrix had, in the past,
been behind the low cost market. But today it is Intel leading the
way in low-cost PCs.”

“Not surprisingly, the leading PC vendor in this category is
eMachines, which recently announced that it will be putting Intel
CPUs in the majority of its systems. In addition to the
announcement concerning eMachines use of Intel, the low-cost leader
announced yesterday its intent to go public.”

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