A rising problem for PC resale: cheaper and cheaper new units

A rising problem for PC resale: cheaper and cheaper new units

By Jerry Powell, Resource Recycling

When demand for an electronic product rises, one option may be to raise prices.

For PC manufacturers, the move by buyers to tablets and smartphones has led PC OEMs to cut their operating margin to spur sales in a weakening market. Dell reported that its recent 71 percent drop in quarterly gross profits was due in large part to a reduction in operating margin for PC sales from 7 percent to just 2 percent.

This affects the PC reuse market, with Dell and other OEMs flooding the market with cheap new products that compete heavily against used PCs.

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