With the announcement that Intel will offer its new, cheaply priced 'Timna' chip, many consumers have to wonder what this will mean for the rest of the home computing market. New PC's equipped with this chip are slated to cost under $600 USD, and will have the technology of the higher-end PC's. This is the biggest advantage for consumers who are looking for the low-cost computer that will be able to perform the functions that they are looking for.
To date, lower-end PC's are unable to compete with the new, higher-end PC's. This is because cheaper PC's are equipped with soon-to-be out of date processors and slower CD-ROM's. With 'Timna', Intel has combined a memory controller and a graphics suppliment along with newer processor technology to make the chip inexpensive. In September, the majority of computer sales was in the $600-$1000 USD price range. Also, the dropping prices with Intel's new 'Coppermine' chip and AMD's retaliation by dropping their prices shows a trend in the PC industry which is attempting to cater to the consumer cry for cheaper computing.
When the processors begin shipping next year, consumers have to question 1) What will happen to the rest of the higher-end PC market, and 2) What will happen to those company's who are already shipping low-end PC's, such as eMachines, etc. One could theorize that with the rise of cheaper and faster processors, and the continual fall in prices of other essential components of computers, this can only mean benefits for the consumer, and more profits for the seller.
With products such as the Timna just around the corner, cheaper, faster computing, with top of the line equipment will soon be within everyone's reach.
