New Technologies
PCI Express, faster graphics.

We’re also seeing increased usage of wireless on desktops in small businesses. A lot of that is to do with small businesses wanting to have the flexibility to change around their office configuration. While you tend to think of wireless as being a notebook technology it’s increasingly applicable to desktops.

Increasing Specifications
Size of hard drives is something that we’re seeing continue to grow. You think you’re getting to a point where you’re capping out your needs from a business perspective but we’re actually not seeing that, we’re seeing demand even in the business space for huge hard drives. We have up to 400Gb hard drives available. What you’re seeing is that people are using desktops to store massive amounts of data and particularly in desktop publishing.

It’s a little like moving into a new house, people tend to expand into whatever space they have available. We do see people buying 2Gb of Ram and 400Gb hard drives, and people are utilising them in their business as well as it being an opportunity to future-proof their systems for when there are applications that actually require that level of specification.

It’s more applicable to high end workstations, I don’t really see it as a mainstream technology in the immediate future, but maybe over the next 18 months.

Laptops Vs Desktops
Prices down, great value.

There’s more awareness of what needs to happen in terms of managing your IT environment for a small business.

Price
Substantial declines in the cost of components like flat panel monitors has really helped improve our cost position. We continue to see component cost reductions in key areas, everything from memory and processors to hard drives, and all of those types of things are helping to move the market down to create a more value in the low end PC space.

At any stage in the game a $5 reduction in costs two years ago would have been a very small reduction but as the costs continue to move down the smaller reductions become a bigger and bigger percentage of the total sale. It’s becomes harder to see massive reductions like we’ve seen in the past but I do think that we will see some cost declines that we can pass onto our customers.

Increasing penetration of laptops into this area – falling laptop prices may well affect desktop sales further.

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