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Low PC prices will change computing

By Staff -- Purchasing, 5/20/1999

Portability and connectivity will be the key drivers of the computer industry going into the next millennium, according to a new report by Cahners In-Stat group.

The report also says declining computer prices will result in a higher percentage of households that have two or three PCs, opening the market for home networking.

As prices drop, total cost of ownership will become more important and factors such as disposability, networkability, and security will become more important in the computer-buy decision.

Disposability will become an important issue because computer buyers want to able to easily discard computer devices and quickly acquire a replacement device with additional features and functions.

Networkability--the ability of computing devices to easily communicate with other information and communication technologies--will be the most important factor across all market segments, according to Cahners In-Stat.

In 2004, desktops will continue to lead the market, although business executives will be far less reliant on fixed computing solutions. Notebooks will become the mainstay for several market segments, and multiple computers in the home will be widespread in the U.S. and Europe.

Mobile workers will embrace handheld products at the beginning of the next millennium. Corporations, realizing the lower cost and increased productivity benefits inherent in these devices, will invest a greater portion of their IT budgets on smaller, portable devices. Specialized IT devices will no longer be reserved for the corporate elite, but will be allocated across functional areas to deliver increased access to information and job-specific data.

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