INDUSTRY NEWS
22 December 2008
Demand falling for mid-level PCs
A proliferation of low-end PCs is reducing consumer and business demand for mid-level components for the performance of everyday computing tasks, it has been suggested.
According to a new report by IT supply chain specialist Converge, 2008 has seen the emergence of new PC markets and the "blossoming" of the service microprocessor industry.
And with low-cost devices appealing to customers the most during what has been a difficult economic year, the company suggested that chip manufacturers are faced with a dilemma to make parts better or cheaper.
Converge also suggested that the ongoing struggle for dominance between chip-makers Intel and AMD had resulted in a fierce pricing war, leaving consumers with more computational power for their investment.
It added that the market for mid-level machines is being hampered further by the growing demand for high-end gaming PCs, which is being catered by a market that remains lucrative despite lower volumes.
In other news, telecoms company Verizon urged firms earlier this month to adopt unified communications in order to reduce costs during the downturn.
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