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A user's dilemma; THE UPGRADE PATH

Posted on: Tuesday, 6 April 2004, 06:00 CDT

The grunt-to-cost ratio for new desktop PCs has never been this good, writes MICHAEL HERMAN in the first of a seven-part series on improving PC performance. But does grabbing the best off-the- shelf deal equal real value or should you consider upgrading over replacing?

A strong Kiwi dollar, aggressive pre-Christmas marketing and high- volume turnover of the Desktop PC saw the advent of the sub-$1000 computer in December last year.

Department stores and PC shops followed The Warehouse's lead after it announced a $999.99 "price breakthrough" on an entry-level Dell system in the weeks leading up to Christmas, with Noel Leeming offering lower-spec Compaq, HP and Packard Bell kits for under $900.

Liam Gunson, hardware analyst at high-tech sector market intelligence company IDC, says the desktop configurations are comparable but the Dell system came with a 17-inch monitor while the rival kits had a 15-inch monitor.

"PCs are becoming a commodity and so price is the main thing that they try to use to compete on now," Gunson says, adding that it is quite hard to differentiate one standard desktop from another.

In a price-sensitive consumer market, lower prices are often the deciding factor in a consumer's buying choice.

IDC figures show that almost 50,000 more desktop computers were sold in 2003 than in 2002, with total shipments for all categories (desktop, mobiles and servers) almost 94,000 units.

But Gunson says it is unlikely the market will enjoy similarly high desktop volumes in 2004 because the growth in portable computers is increasing on the back of significant price cuts in that category.

While increases in portable sales and the consequent price cuts in this category will be good news for consumers wanting to embrace the mobile lifestyle, it will erode the desktop market and slow down or, perhaps, even end the season of price drops for the bulkier machines.

So, when is the best moment to replace an older setup or should you rather be considering upgrading your existing kit to improve its performance and extend its lifespan?

Darren Thomson, technical sales engineer at Computer Future, says there are two lifespans users need to be aware of. The first is the functional lifespan -- the length of time a well- maintained computer will run for. The other is the useful lifespan -- the period a computer with its original configuration can be used before a combination of the inherent limitations of older technologies and the increased computational demands of new software renders it out of date.

Thomson says most home users should be able to squeeze about four years of useful life out of a computer, but this could be slightly more or less depending on whether the setup is a budget low-end model or a top of the range high-end one.

Budget systems sold at the same time as the top-end models are usually built using older and cheaper technologies, resulting in them having a shorter useful lifespan than their more expensive but equally old counterparts.

The reason most users other than gamers and digital-imaging hobbyists choose the budget option is that the difference in price between the top- and bottom-end of the setup range is measured in hundreds of dollars, with some top-of-the-line systems costing the same as two or even three budget computers.

Thomson says users need to be guided by their intended use when deciding to replace or upgrade an old machine. "It really does come down to the point of what you want to do with it," he says.

Thomson cautions users to be certain the new cheap system will give the grunt they expect. "But in terms of how much better it is than your existing setup, it might not be as good as it sounds."

* Next week Technology will look at videocard and monitor upgrade options and which users will benefit from spending money on these components.

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THE UPGRADE PATH

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Although upgrading has typically been the preserve of computer gaming enthusiasts, home users are now viewing this as a way to improve their computing experience and to extend the lifespan of their machines.

Over the next seven weeks Press Technology will explore upgrade options to help you understand what improvements are possible and how you can customise your PC to deliver the best performance for you.

The benchmark upgrade-worthy computer for this series is a Pentium III 1GHz with 256MB of RAM, a 20GB hard disk and a CD-RW drive.

The entry-level computer today is a Dell Dimension 2400 and its equivalents from the other vendors, which sell for about $900 and $1000 at retailers such as Noel Leeming and The Warehouse.

It is sometimes possible to find custom-built desktops from franchised PC stores but readers are advised to buy from reputable stores that will be able to honour their warranties. Approach friends and family for word-of-mouth referrals as these are often the best indicators of reliability and service.

Upgrading is a vast area and improved performance is influenced by many factors, including the interrelationship between components and the limitations of technologies. Technology recommends that users consult an experienced and knowledgeable technician before putting money down on the counter.

Technology will explore the value of upgrading these components:

* Videocards and monitors.

* Processors, motherboards and memory.

* Cases, cooling devices and input devices.

* Soundcards and speakers.

* Operating system.

* Drives and other stuff.

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