When buying a new PC, you get what you pay for

As any computer enthusiast knows the price of personal computers has rapidly declined in the last year. Last fall, it was difficult to find an entry level name-brand PC for under $3,000. This year there are a number available for under $2000.

When it comes to locally assembled clones prices for entry level systems (166 MMX or 200 MMX processors, 16MB RAM, 2 GB hard drive, CD-ROM drive and 14" monitor) have dropped by half to about $1300-$1600.

In addition, the price of peripherals, such as printer and scanners has decreased. Last fall, 24-bit scanners and high quality inkjet printers were running in the $500 to $1000 range. This year you can find even better quality units for under $300.

The price slashing began earlier this year, but picked up pace at the end of July when Intel cut prices across its entire line of processors. Citing greater production yields than expected, the company reduced its volume purchase price of the 300 MHz Pentium II by 57% (from $1981 to $851 U.S.), the 233 MHz Pentium with MMX by 35% (from $594 to $386), the 150 MHz classic Pentium by 37% (from $150 to $95), and the 200 MHz classic Pentium by 51% (from $257 to $125).

The net effect on the industry as a whole has been to move the classic 200MHZ Pentium to the entry level, while placing the speedy 300MHz Pentium II within the affordable range.

The following is a rundown of the basic categories based on price structure:

• The leading edge: These systems feature the Pentium II processor with Intel's new 440LX AGP chipset. As a result of the high degree technical sophistication these machines continue to run at about $5000.

• The second tier: One step down form the leading edge encompasses a relatively broad category. This year it includes the 300MHz Pentium II with the older 440FX chipset, as well as the slower 233 and 266MHz Pentium II (also with the 440FX). Prices range from roughly $3200 with a modest component mix (233MHz Pentium II, 32MB EDO or SD-RAM, 512k internal cache, 24X CD-ROM drive, 6GB EIDE hard drive, basic graphics controller with 2MB RAM, 17" shadow mask monitor with 0.28mm dot pitch, 16-bit FM synthesis sound card, basic stereo speakers, 56k modem (with voice), keyboard, mouse, Windows 95 and Office 97 Small Business Edition with Encarta, one to two year warranty, to roughly $4500 with slightly more advanced component mix (266 MHz processor, 32 MB EDO or SD-RAM, 512k internal cache, 24X CD-ROM, 6GB EIDE hard drive, 4MB Graphics controller, 17" Colour digital monitor, high-quality wavetable sound card, speakers with subwoofer, keyboard, mouse, 100MB internal zip drive and software.

• Third Tier: Two steps back from the leading edge is the Pentium /AMD MMX group. This is probably the area most computer users aim for. Prices start at just over $2000 with a modest mix of components, rising to around $4300 with higher end components. Many of the computers aimed at the home market fall within this category and come equipped with more features such as ATIs All-in-Wonder video boards with Rage II 3D chipset, TV tuner and VGA-to-TV output, monitors with built in stereo speakers, sub-woofers, and fast CD-ROM drives.

• Entry Level: For under $2000--sometimes under $1700--you can get your hands on last fall's leading edge technology (200MHz Pentium, 32MB of RAM, 2GB hard drive, 15" monitor, etc. But within this category at least one new sub-category has arisen. It's built around trailing edge Intel processors (133MHz or less), or inexpensive non-Intel processors, primarily from Cyrix/IBM and from AMD (5x86).

Regardless of the level of processor you start with, the following kind of component mixes will affect whether the particular system falls at the bottom or top of the price range.

• Random access memory (RAM): Aside from the Web.PC noted in the above table, no one is shipping systems with as little as 8MB of RAM. Expect 16 MB at the low end and 32 MB to be the most common amount in the mid-range and 64 MB at the high end.

• Sound Cards: As has been the case for several years, sound cards with memory and wavetable synthesis consistently provide better sound than those with FM synthesis. The difference is that this year wavetable cards are much more prevalent, and much cheaper.

• Video cards: Although all computers have a basic SVGA graphics card, with one or two MB of RAM, an increasing number of PC Makers are bundling more exotic video cards with their systems. Systems with multipurpose video cards--TV tuner for watching television on your computer, SVGA-to-NTSC outputs for watching computer on your television, video capture and editing capabilities, 3D video capabilities, etc. are becoming more prevalent. Look out for ones made by Canadian companies ATI and Matrox.

Once you have decided what you need, you start shopping around for a system--you should buy the cheapest system with the specifications you require, right? NO!

Before comparing prices, make sure you know what is going into your machine.

RULE OF THUMB: If the vendor's specifications do not name the manufacturer, you are probably getting generic components that may be of poor quality.

Make sure the vendor is willing to list the brand-name of the components he is selling.

In addition, often people feel more comfortable buying name brand computers, however proprietary systems such as Compaq and IBM etc. have lower future resale values because replacements parts are usually far more expensive than standard custom systems and are often not upgradable.

Modified from the Toronto Star (Thursday, September 18, 1997) article entitled "The Price is Right!"

Genesis Computer Systems
494 Adelaide (Middle Unit)
Woodstock, Ontario

Tel. 519-539-5607
Fax. 519-539-2528
Email. genesis@oxford.net