Computer Buyers Have Complex Web of Choices and Prices Available

If a PC is on this year’s holiday shopping list, good cheer awaits.

Never before have there been so many high-performing, affordable personal computers available--and easy ways to buy them. The tricky part is choosing one.

For about $400, you can wrap up a reliable system that handles all computing tasks with a blink of an eye. For $3,000, you can tie a bow around a top-of-the-line powerhouse that runs sophisticated games or e-mails personal photographs around the world. There are countless choices in between.

“There’s no one answer. . . . . It all depends on how you plan to use the PC . . . how much you care to spend,” said Don Willmott, executive editor of PC Magazine.

This season, several manufacturers are letting their customers decide what’s best for themselves by giving them the option of custom-building their own systems. Online shoppers can flip from one company’s Web site to another, comparing prices and changing hardware configurations to best meet their needs.

Top sellers like Apple, Compaq, Dell, Gateway and Micron have virtual stores that let you place an order online. Even lesser-known companies have gotten into the act--there’s sTupidPC Inc. of Norcross, Ga., which caters to “good folks who need just a li’l extra hand holdin’.” It’s smart enough to offer computers without a monitor starting at a low $700 (14-inch monitor $100 extra).

But how do you choose a brand? And how do you decide on hardware when you’re not sure what all the terminology means anyway?

If you’re an Apple Macintosh buyer it’s simpler--the two desktop models available now are the highly rated iMac, which costs about $1,300, and the Power Macintosh G3, which starts at $1,600.

Avoiding Obsolescence

But the choice can get somewhat confusing for Windows PCs.

Should you buy, you might ask, a lower-priced PC powered by a 266-megahertz processor (last year’s top model) or cough up more for the fastest 450-megahertz Pentium II? How many megabytes of memory should you get?

Most PCs on the market today, even low-end models, have more than enough speed for basic applications like Internet surfing or word processing. What differentiates them is their ability to handle multimedia graphics and sound.

“We usually tell people . . . you should always buy as much PC as they can afford--just to stave off obsolescence,” said Willmott.

Philip Russell, a 66-year-old doctor from Potomac, Md., did just that. On Thanksgiving Day, he bought a custom-built Dell PC with a 450-megahertz Pentium II processor (no monitor) for about $2,000. It replaces a PC powered by an early model Pentium chip.

“The last one didn’t last very long. It doesn’t have enough memory, and its modem isn’t fast enough,” he said. “I just hope the software developers don’t make me obsolete in a couple of years.”

A Brisk Selling Season

His concern is shared by many. Although 46.6% of all U.S. households have a PC, according to International Data Corp. of Framingham, Mass., some are in the market for another one because their systems have become outdated. Intel Corp., the leading computer chip maker, constantly updates its Pentium processor and slashes prices on older models.

The top PC on the 1997 holiday wish list is about half as powerful as the 1998 models, and about a quarter less expensive. Christmas ’99 probably will bring a new crop of more sophisticated PCs for the buck than this year.

“Price performance usually doubles in a year. All those people who bought last year are probably feeling sorry for themselves,” said Willmott, himself looking to replace a 1995 home system once considered state of the art.

At least one manufacturer offers protection against technology obsolescence. Earlier this year, Gateway introduced its “Your Ware” program, which allows customers to trade in their systems toward the purchase of a new Gateway PC after two years.

Luanne Flikkema, director of Gateway’s global market research, says sales have been good thus far and there is strong interest in the program. Other PC manufacturers also report brisk sales this season.

A steady drop in PC prices is largely responsible for the increased demand. In the third quarter, 22.6 million PCs were shipped worldwide, a 13.7% jump over the same time last year, according to Dataquest Inc. in San Jose.

Since the beginning of last year, the average retail price of a PC has fallen to about $1,200 from $1,600. An increasing number of companies--like IBM, Gateway and Packard Bell--offer systems for under $1,000. Some companies are even breaking the $500 barrier--like the just-released Emachine, created by a partnership of Korean high-tech manufacturers TriGem and Korean Data Systems.

The Emachine, which sells for $400 ($100 extra for a monitor), is fairly high-powered for the buck. It comes with a 266-megahertz microprocessor, a 2.1-gigabyte hard drive, 32 megabytes of RAM and the Windows 98 operating system.

It and others like it are aimed primarily at the 17 million households of first-time buyers, many of whom couldn’t otherwise afford a computer, and higher-income households seeking a low-cost second or third machine. About 30% of all PC buyers are expected to buy a sub-$1,000 system this year, according to IDC.

Most industry experts, though, say average buyers should expect to spend about $1,500 for a complete system that will stay fairly current (or at least adequately run the latest software) for the next two to three years.

It’s usually not worth upgrading a system if you’ve had it for more than two years. However, more recent systems, especially those that use 200 megahertz or faster processors, can be upgraded reasonably. A 4-gigabyte hard drive, for instance, can be had for about $200, and an extra 32 megabytes of memory costs about $50.

For new PC buyers, the experts suggest this basic configuration:

* A processor chip that runs at a minimum speed of 300 megahertz. Intel’s Pentium II chip is the most popular, but there are less expensive models like the Celeron and Cyrix chips.

* At least 64 megabytes of SDRAM memory.

* At least a 6-gigabyte hard drive for storing data and software.

* A 56K modem. (Most are labeled “V.90,” the term for the new international modem standard.)

* A standard 17-inch monitor. (While flat-panel screens are available, many are pricey and quality can vary.)

* A DVD-ROM drive. Considered the successor to the CD-ROM, it enables users to view full-length movies, play high-end games and listen to music on their PCs. (Avid game players also need a 3D graphics card and a sound card.)

* A Zip drive for backing up your hard drive.