"The most disruptive changes come from the high end of the low end"
hardware.slashdot.org
hardware.slashdot.org
After all, the equivalent of Pentium II with 64MB of RAM and a basic video card can be had for next to nothing today, but nobody wants it, because it will not run latest Linuses or Windows XP smoothly and dealing with 8-10-12 megapixel photos from your camera will be slow as hell on such PC, I am not even talking about video or modern games.
In the end, people want software. It is always about the software. It's always about creating value - if "next Vista" delivers something that everybody wants, and it will require $1K hardware to run, it will be tough to sell $400 laptops. People have been overpaying for Apple hardware for ages, because those computers ran Apple software and they wanted it.
Haven't you heard this conversation before: "You should by X. Really? But will it run Y?"
A Dell Vostro 1000 with 1 gigabyte of ram, 15.4inch screen, 120 gigabyte hard drive, and Amd Semptron 3600+ processor.
Put it this way: nobody wants a PII/64M, but do you buy an Intel Core Duo or do you buy a Sparcstation/SGI box?