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Increasing Competition to Hit Netbook Prices

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The general consensus at the Intel Developer Forum 2008 in San Francisco was that netbook makers will have to slash prices in wake of increasing competition. True to that prognostication, Acer slashed the price of its Aspire One and Linpus Linux Lite netbooks by $50. The former can now be bought for $349 and the latter for $329. The bigger PC manufacturers that have long held sway over the PC market are still to fully embrace this particular segment.

But as the tussle gets more cacophonic, netbook manufacturers will have to cut prices just to be heard by customers over the din. Richard Doherty, research director for a market research firm, Envisioneering, expects majority of netbooks to sell at $299 in the foreseeable future with the possibility of prices plummeting down to $249 by the holiday season.

COMMENTS:3
COMMENTS
avatarHey I've got it... let's politicize EVERYTHING.

While you're at it, check your shoes and clothing and find out which sweatshop they were made in.  Don't forget to trace the origins of the food in your pantry.  You might also want to examine every electrical device in your home and find out which 3rd world country they were manufactured in (how much are those motherboard assemblers REALLY making)?  How about your automobile?  Lots of stuff from Thailand and China there too!

 Jeez, give it a rest already!  This is a technology site, not the Wall Street Journal!

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avatarThe manufacturers are still

The manufacturers are still making a profit. They are using forced prison labor from Mexican and Chinese prisons and extremely low paid child labor in China and Mexico. So really the manufacturers only have to pay for the base materials and the few dollars a month that they pay all the children. As for the materials the children and prisoners do the mining for the needed minerals and recycling of metals and plastics taken from dumpsters behind wallmarts and bus stop trash cans. I'd bet that these net computers only cost about $50 bucks each and then that's mostly for the chipset and processors.

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avatarI'd really like to see an

I'd really like to see an analysis of what current production cost is on any/all of the different netbooks available now, I wonder how close they're getting to the break-even point.  It would be interesting if the first gen of netbooks ended up being loss-leaders for the marketplace just to prove the whole concept.

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