Is There a $200 PC In Your Future?

We've all seen the retail price of personal computers (PCs) drop in recent years, but could they possibly fall to a low of $200 by the end of next year? Industry analysts are divided on this issue.

Some analysts believe companies like eMachines Inc. [1], who already sell computers for less than $400, will make this prediction a reality. Another low-cost player could be Tatung [2], which is said to be developing multi-hued, low-cost consumer PCs that will start at approximately $299, with a lower-line version of this same PC available for as low as $200.

But don't expect any bells and whistles. This low-line machine won't have a CD-ROM, will use Linux [3] in place of Windows 98, and will be based on a Cyrix [4] chip.

Analysts on the other side of this issue are doubtful that PCs will actually be available for $200 without special financing or Internet access contracts attached. Even if stripped computers fall to a low of $200, some analysts feel this price point is not sustainable.