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Microsoft's (NASDAQ: MSFT) new operating system, Windows 7, is set to be released on October 22, 2009, but it's unlikely to have an impact on PC prices. So, if you're feeling the urge to rush out and buy a new box, try to hold out until the end of the month. You'll get a bit more life out of it.
Fortunately, PC prices aren't expected to get much lower, so the entire supply chain -- from chips to software -- has nowhere to go but up. The effect, though, has been to put some serious pressure on manufacturers and retailers to keep from screwing up the release.
Research firm Gartner puts the average price of a PC (based on both desktops and laptops) at $761 for the first six months of 2009. A year earlier, it was $941, and it was a whopping $1,364 in 2003. The drop in prices has been aided by an increase in consumption: the average U.S. household has 2.5 PCs.
For PC manufacturers and retailers, inventory management has been a priority, especially with Windows 7 on the way. Dell (NASDAQ: DELL) has been working with several of its channel partners to manage inventory flows weekly, and major retailer Best Buy (NYSE: BBY) has been keeping a very close eye on its shelves. Nobody wants to screw up the release of Windows 7.
The savvy buyer, however, remains in control. Hewlett-Packard (NYSE: HPQ) is offering price breaks of up to 60% to get rid of some soon-to-be old machines, and Costco (NYSE: COST) is pricing its boxes to move.
Instead of trying to get it right, it looks like the PC community just doesn't want to get it wrong.
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