Taiwan Cuts Chip Production prices by 10 to 15 Percent

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I love how they always blame the economy and consumer confidence as the main reason for slow computer sales or electronics in general.

I think the bigger factor is that the vast majority people don't care about having the latest and greatest computer. For 90+% of people a 3Ghz Pentium IV with 1GB RAM and Windows XP is more than enough computer horsepower to fill there computing needs. Heck if they have someone clean it out once a year most of those peoples needs can be fulfilled with 512MB RAM.

Then an even larger percentage can be fulfilled with any Core 2 or Athlon 64 X2 with 2GB RAM running Windows XP or higher or Mac OS X. As that will handle most multitasking, online HD video and any Flash content.

Because of smart phones and tablets online content is not getting much more complex either as they have a long way to go before their hardware meets PC performance. Even when they do start approaching PC performance. It'll take even longer for content providers to catch up as they will want to support the older tablets and smartphones until most people have ditched them for newer models.

So people just are not buying because they don't need to.
 
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