The Multimedia Price War Heats Up: A Buying Guide

Strategic Insights -

As the multimedia market continues to gain momentum, hardware manufacturers are gearing up for a price war that will make multimedia equipment more accessible to consumers. Apple Computer Inc., International Business Machines Corp., Compaq Computer Corp., AST Research Inc., Dell Computer Corp., and NEC Corp. are among the major players offering aggressively priced multimedia bundles targeted at various markets.

For corporate users, a true multimedia system requires a fast processor, CD-ROM drive, sizable hard disk, high-resolution color monitor, stereo sound system, microphone, mouse, and at least eight megabytes of random access memory (RAM). Depending on the user's needs, the cost of such a system can range from $3,000 to $5,000.

Key Takeaways:

  • Dell Computer Corp. offers a starter system with an Intel 486 DX processor, internal CD-ROM drive, Sound Blaster card, and 14-inch color monitor for $2,950.
  • Apple Canada Inc. prices its entry-level system at $2,800, featuring an advanced RISC (reduced instruction set computer) chip that can run both Macintosh and Microsoft Windows applications and peripherals.
  • AST Canada Inc. plans to launch a bundle priced below $2,000 featuring the ASTWorks system interface, a multimedia-style navigation aid designed to make using computers easier.
  • Upgrading an existing PC is an option, with a new Intel 486 DX motherboard costing around $500, memory upgrades around $500 for eight megabytes, and hard disks starting at about $300.
  • CD-ROM drives come in double, triple, and quadruple spin variety, with drives starting at about $300 for a double spin system and $600 for a triple.
  • A sound system is a must, costing around $200 for a decent 16-bit card complete with speakers.
  • Creating multimedia applications requires additional hardware, including a digital scanner ranging from $300 to $1,500 and a bigger monitor, priced from $600 to $1,200.

Statistics:

  • Dell's starter system costs $2,950.
  • Apple's entry-level system costs $2,800.
  • AST Canada's planned bundle will be priced below $2,000.
  • A new Intel 486 DX motherboard costs around $500.
  • Memory upgrades for eight megabytes cost around $500.
  • Hard disks start at about $300.
  • CD-ROM drives cost between $300 and $1,500.
  • A sound system costs around $200.
  • Digital scanners range in price from $300 to $1,500.
  • Bigger monitors cost between $600 and $1,200.

Sources:

  • Byline: SCOTT RANKINE BY SCOTT RANKINE Special to The Globe and Mail
  • Scott Rankine, "The Multimedia Price War Heats Up: A Buying Guide", The Globe and Mail
  • Apple Computer Inc.
  • International Business Machines Corp.
  • Compaq Computer Corp.
  • AST Research Inc.
  • Dell Computer Corp.
  • NEC Corp.
  • Microsoft
  • Sigma Designs
  • Adobe
  • Autodesk Inc.