The Chips Are Up For Pc Buyers

Been dazzled by the ads for new MMX PCs, splashed all over the newspapers, with low price tags? Wait a while, and you will be pleased even more.

Personal computer prices are set to dip by at least 6 to 7 per cent in the domestic market following Intel Corporations proposed cut in MMX Pentium processor prices the world over. The chip price cuts are unpredecented in their depth ranging from 37 per cent on 166 MHz processors to around 50 per cent at the 233 MHz top-end. MMX-based PCs handle multimedia much better than older Pentium chips.

Intel controls over 90 per cent of the worlds PC chips market, and any price cut it introduces has an immediate effect on the market. Indias domestic and MNC PC manufacturers rely on Intel for their processors, and they are usually quick to transfer the cuts to the customer.

 

Mumbai-based Zenith Computers has already announced that it would cut prices from July 29 a day after Intel announces its cuts by Rs 4,000 translating into a 6 to 7 per cent reduction. Since Zenith Computers subscribes to the Intel Inside Program, it can pass on the price cuts to the consumers immediately. Compaq Corp, a subsidiary of the US major, has said that if the price cuts happen, Compaq prices will drop too.

Meanwhile, the latest 233-MHz Pentium PCs, slated to make a debut in India will do so at lower rates than expected.

The price cuts will have a moderate impact at the top-end, where prices are around Rs 2,10,000, as high specifications, and not just processor costs contribute to the high prices. Prices could come down by as much as Rs 12,000 to 14,000. These PCs feature 200 MHz chips, 2 GB hard disk space, 32 MB RAM, 12 X CD-ROM drive, a colour SVGA monitor and quality multimedia equipment built-in. They also have a 28.8 kbps fax/modem and internet software included. These PCs offer genuine operating system software and bundled software galore.

The local assemblers, quick to respond to any price cuts in the past, are also expected to reduce prices. Now, a low-end locally assembled 166 MHz multimedia PC with 1.2 GB, 16 MB RAM, a 12X CD ROM drive and a colour SVGA monitor comes for around Rs 55,000. The assembled PC may have the software, but its usually an illegal copy, which could get you into trouble. Here, the price cuts should be around Rs 4,000.

But should you do your wallet a favour and go for the other Pentium chips minus the MMX? No, as PCs age fast, and you may end up with a PC that feels slow and outdated not to mention un-upgradeable an year from now.

And any MMX chip will be around 20 percent faster than another chip with a similar clock speed. Waiting for prices to fall further will not work either, as computer prices are always falling. So its no use waiting any longer the best time to buy a PC is always NOW.