PC Prices Keep Falling

Just when you thought prices were in the bargain basement, computer prices drop even lower. The big news isn't the sub-1000 dollar PCs anymore. Now, they are under eight hundred dollars and still falling. At the number one computer maker Compaq, CEO Eckhard Pfeiffer says consumers can find PCs out there that are cheaper still....

"That's possible you know. The needs to watch that it is a product that is the latest technology rather than some leftover that doesn't have the technology that is just being dumped at a low price. Compaq products are constantly at the leading edge of state of the art and are low priced. Very attractively priced. I think we will see very attractive offers around Christmas time."

Even below the eight hundred dollar range...

"Very well possibly. The eight hundred is a suggested resale price and obviously the retailers do their additional thing in making it even more attractive."

There has been talk of computers approaching the five hundred dollar price point by year's end. That usually means higher end machines will become more affordable too. If you're buying, the best advice is usually to avoid the lowest price models which often sacrifice expandability along with speed. A lot of beginners wind up learning that the hard way.