Crashing Prices

Falling demand and deep discounting lead to vanishing profits and heavy casualties in PCs

It is the best of times in the personal-computer market. Prices are in free fall. Options that were once prohibitively expensive are now packaged at rock- bottom prices. The fastest chips and the biggest hard drives are cheap and plentiful. For consumers who have often had to wait years to buy the latest, most powerful machines at affordable prices, the market has entered what seems to be a golden age.

It is also the worst of times. For most of the companies that make those computers, that market has suddenly become a lethal place. Once successful companies such as IBM, Compaq,...

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