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Falling prices are not necessarily a good thing. (hardware and software prices) (Computer Connections)

Electronics Now

| January 01, 1994 | Holtzman, Jeff | COPYRIGHT 1994 Poptronix, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Prices of both hardware and software continue to drop, but this may be a mixed blessing. This month we'll examine trends in the hardware arena.

Intense price competition (as well as natural technological evolution) has roughly halved the cost of high-end PCs during the past two years. The effect has been to force many smaller PC clone vendors out of business, and consolidation among those that remain. For example, several years ago Tandy (Radio Shack) bought Grid systems, a maker of high-end portables. More recently, AST Research bought Tandy's computer line, lock, stock and barrel, thereby hurtling AST into a position as one of the three largest PC vendors. These ...

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