The quest for growth is forcing vendors to test the limits of PC price elasticity. The whole dynamic is compounded by the fact that buyers have increasingly come to expect sharp price declines.
You're seeing price drops and government-sponsored initiatives in many countries, in an effort to get PCs in. But you're still facing low per capita income and an immature economic structure.
PC vendors have succeeded in increasing the unit share of higher-margin mobile PCs. But this has resulted in a significant sacrifice of desk-based revenue as vendors struggle to maintain the value proposition of desktops at the low end of the market.
End-user concerns about availability and value of these new technologies could result in some buyers holding off PC purchases until later in 2006 or beyond.
Thanks to pricing and innovation in form factor and battery life, mobile PCs are appealing to a wider range of users.
The next two years will produce a turning point for the PC industry.