In the global market, laptop prices have dropped to around $500. Tests show that all three budget laptops perform well with basic office applications.
Purchasing a laptop directly from the manufacturer for just $500 is no longer a pipe dream, though these laptops come with limited functionalities. The price is very attractive, and they perform quite well with everyday applications such as email, web browsing, word processing, and some other minor applications.
Tests conducted with laptops priced around $500 from Acer, Dell, and HP reveal similar results. Gateway and IBM also offer products in this price range. These extremely low-priced systems threaten to overturn the belief that “the cheapest laptop cannot be cheaper than the lowest-priced desktop.”
In August, for the first time at retail stores in the U.S., the number of laptops sold exceeded that of desktops. According to NPD Techworld statistics, laptop sales at retail stores made up 52% of the total. This increase aligns with price reductions: the average price of laptops in August 2004 was $1,350; however, this year in August, it dropped to $1,100.
A Fair Trade-Off
However, to get a laptop for $500, you need to be diligent in your search. For example, the Acer Aspire 3003LCi has a retail price of $649, but due to discounts and promotions, it is available for $499 in stores. Similarly, the HP Compaq Presario M2000, originally priced at $579, has been reduced by $50. The Dell Inspiron 1200, priced at $549, can also be purchased for $499.
“Living” with a budget laptop also means accepting some compromises. These low-cost systems cannot break speed records, scoring quite low in tests with PC WorldBench 5 compared to other high-end laptops. The Acer laptop scored the highest among the three, achieving 68 points, featuring the fastest processor (AMD Mobile Sempron 1.8GHz) and the most memory (512MB RAM compared to the other two with only 256MB). However, the Acer’s score is still 10 points lower than the average score of laptops for the month reported by PC World U.S. Its battery life lasts for only 1 hour and 19 minutes, meaning you have very little time to unplug it from the outlet.
Using an Intel Celeron M 350 1.3GHz processor, the Dell Inspiron 1200 scored 57 points on PC WorldBench 5; the Compaq Presario M2000 with a Celeron M 360 1.4GHz scored 60 points. At the very least, you will want to upgrade the RAM of these laptops to 512MB, which is the minimum requirement for smooth Windows XP operation. This upgrade costs around $50.
All three laptops use low-end integrated graphics, utilizing the PC’s chipset and main memory instead of dedicated graphics chips and memory. Such graphics configurations are not suitable for gamers or video editors, though they handle DVD playback quite well.
These models achieve PC WorldBench 5 scores comparable to typical laptops for common tasks like web browsing with Mozilla, using Microsoft Office 2003, and image editing with Adobe Photoshop. If you are a student, casual user, or looking for an inexpensive second computer aside from your main PC at home or in the office, then these laptops are worth considering. Gamers and users running heavy audio or graphics applications should steer clear of these laptops.
Pros and Cons
While all three laptops are reasonably priced, they lack several essential features found in typical laptops. For instance, only the Acer Aspire 3003LCi has integrated Wi-Fi support; the Dell Inspiron 1200 and HP Compaq Presario M2000 do not offer wireless connectivity. None of the laptops have memory card readers; all three also lack DVD burners.
The Dell and Compaq models have limited hard drives, at 30GB and 40GB, respectively. The Acer has a 60GB hard drive. Both the Acer and Dell feature a combined DVD-ROM/CD-RW drive, while the Compaq comes with only a DVD-ROM drive.
On the plus side, each laptop has USB 2.0 ports, ethernet, modem, headphone and microphone jacks, and PC Card slots. The Compaq even includes a FireWire port.
Each laptop has features that may appeal to users. The Compaq offers impressive sound and design. The Acer has a function key array that you can assign as shortcuts to quickly launch commonly used applications, and its touchpad includes a four-way scroll button in the middle. Dell also features three USB ports and a decent battery life of 2.4 hours.
You can also upgrade these laptops, which is not always possible with older models. For instance, all models allow for RAM upgrades and let you replace the hard drive with a larger one.
You also benefit from reasonable warranty terms from Acer and HP: each laptop comes with a one-year warranty and phone support. Dell offers no phone support or hardware support, with only a 90-day warranty; technical support via email and phone incurs an additional $25 fee.
Prices Will Continue to Drop
How much lower will laptop prices go? Below $500, some stores report that this is possible.
The cheapest laptops could drop to around $400 by the end of this year and may reach approximately $300 by the end of 2006.
According to an analyst from Endpoint Technologies Associates, thanks to increased production, some high-cost components have decreased in price. This has led to overall system price reductions.
For example, according to market research firm iSuppli, the cost of flat-panel displays, which typically accounts for more than half of a computer’s total value, has dropped by over 70% over the past 12 months. The costs of other expensive components in laptops, such as hard drives and memory, have also halved in the past year.
Cheaper components do not mean lower quality products. Low-cost systems must undergo quality checks just like any other systems. These systems can run basic applications effectively.
However, Dell and other manufacturers agree that budget laptops are seen as bait. HP states that selling low-cost laptops encourages users to consider upgrading their machines.
Understand What You Need
Before you click to buy a budget system, ensure that the system can perform the tasks you need. While manufacturers are always looking to squeeze money from customers, you can find computing power that meets your needs without overpaying.
For instance, spending an additional $50 for the Dell Inspiron 6000 provides you with a one-year warranty, a 40GB hard drive, and a 15.4-inch LCD screen, compared to the Inspiron 1200, which only has a 90-day warranty, a 30GB hard drive, and a 14.1-inch LCD screen. In this case, you may need to consider a slightly higher model to get the features you require. Some manufacturers only sell fixed computer configurations, with little or no options for upgrades.
Also, consider whether you truly need a laptop. With budget laptops and desktops offering similar pricing, you still get the superior processing power of a desktop computer. The HP Compaq Presario SR1420NX Minitower, priced at $450, uses a 2.93GHz Celeron CPU, 512MB RAM, and an 80GB hard drive, with a 9-in-1 card reader and a DVD+/-RW drive (though you will need to spend an additional $100 for a 17-inch CRT monitor or $200 for a similarly sized LCD monitor).
| Feature Comparison ACER LEADS THE PACK These laptops below run office and web applications quite well, but some are limited in RAM, storage capacity, and battery life. | |||||||||||||||||||||||||||||||||||||
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