Intel Corporation (INTC), Microsoft Corporation (MSFT): Whatever Happened to Expensive PCs?

Mr. Softy could use a lift

In many ways, Microsoft Corporation (NASDAQ:MSFT) rests its PC laurels on the fate of Intel’s success in mobile computing. So long as Intel can make inroads into the mobile computing world, Microsoft Corporation (NASDAQ:MSFT) has a decent shot at making Windows 8’s backwards-compatibility a key selling point to potential users. With the prospect of $200 Intel-powered Windows 8 tablets on the horizon, backwards-compatibility for a great price could potentially drive new revenue growth to Microsoft Corporation (NASDAQ:MSFT)’s Windows division and help tip the scale back in favor of the PC. Consequently, a $200 Windows 8 tablet doesn’t address the issue of falling PC prices and may actually cannibalize PC sales.

The way forward

Is it safe to say that PC average selling prices will continue to decline? Unless the sea of $699+ Haswell-powered convertibles coming this holiday season captivates users, I think it’s pretty likely that the PC will face continued pricing pressure in the future. Lower-end computing devices continue to get better in terms of performance for the price, and everyday users may not see the value of paying up for higher-end devices.

In the end, I think it’s become clear that PC will continue its progression to become more tablet-like and it’s still a bit of a wild card how this will all play out for investors.

The article Whatever Happened to Expensive PCs? originally appeared on Fool.com and is written by Steve Heller.

Fool contributor Steve Heller owns shares of Qualcomm and Intel. The Motley Fool recommends Gartner and Intel. The Motley Fool owns shares of Intel, Microsoft, and Qualcomm.

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