Tuesday, October 31, 2006

Computer Bargains May Be On The Way

If you are thinking about getting a new desktop computer soon, you might be able to get some great buys over the next few weeks. The investment banking company, Goldman Sachs is reporting that demand for desktop computers "is falling off a cliff."

Motherboard orders for the clone, or white box, desktop PC market has slid nearly 20 percent from its early October peak. Goldman Sachs says that people and companies are not buying now in anticipation of the new Windows Vista operating system that will be released in the first quarter of next year. There is also an increasing demand for laptop computers, thereby helping to kill off demand for desktops.

As motherboards and other desktop PC components pile up in November, Goldman Sachs believes companies will start a price war to clear their inventories. So, get ready for some big bargains.

As for laptops, the demand is outstripping supplies. At an investors conference last week, Acer executives said they expect to be able to procure only 95 percent of the components they need to sell laptop PCs in the fourth quarter, which is the peak season due to year-end holidays.

Also, a massive recall of laptop batteries by major PC vendors such as Dell and Apple Computer has caused a shortage of batteries because it comes at the time of peak laptop demand for the year. The recall was due to defective Sony parts that can cause the batteries to overheat and possibly catch fire. Sony expects the recall to total around 9.6 million batteries.

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