Average selling price

Selling prices of personal computers, unlike other consumer commodities, steadily declined due to lower costs of production and manufacture. Capabilities of the computers also increased. In 1975, an Altair kit sold for only around US $400, but required customers to solder components into circuit boards; peripherals required to interact with the system in alphanumeric form instead of blinking lights would add another $2000, and the resultant system was only of use to hobbyists.^[16]
At their introduction in 1981, the US $1,795 price of the Osborne 1 and its competitor Kaypro was considered an attractive price point; these systems had text-only displays and only floppy disks for storage. By 1982, Michael Dell observed that an IBM-compatible personal computer system selling at retail for about $3,000 US was made of components that cost the dealer about $600; typical gross margin on a computer unit was around $1,000.^[17] The total value of personal computer purchases in the US in 1983 was about $4 billion, comparable to total sales of pet food. By late 1998, the average selling price of personal computer systems in the United States had dropped below $1000.^[18]
For Microsoft Windows systems, the average selling price (ASP) showed a decline in 2008/2009, possibly due to low-cost netbooks, drawing $569 for desktop computers and $689 for laptops at U.S. retail in August 2008. In 2009, ASP had further fallen to $533 for desktops and to $602 for notebooks by January and to $540 and $560 in February.^[19] According to research firm NPD, the average selling price of all Windows portable PCs has fallen from $659 in October 2008 to $519 in October 2009.^[20]