[X4U] How can we compete?

[Chris Malanga]

A friend of mine just bought a new PC at Aldi (a chain of discount/grocery
stores here in the US) for $799.

This PC has the following specs:

* Intel® Pentium® 4 Processor 3.0 GHz Supports Hyper Threading Technology
* 800 MHz FSB, 1 MB L2 Cache
* Dual layer DVD/CD writer 2.4x max DVD+R9
* Additional DVD-ROM drive easily copies DVDs
* Built-in wireless LAN 801.11g
* Watch & record TV on your PC with the FM/TV tuner card
* Wireless keyboard & wireless optical mouse included
* RF remote control for easy control of DVD, TV, VCR, CD, radio
* 160 GB hard drive @ 7200 rpm
* 512 MB DDR SDRAM
* 2x FireWire
* 6x USB 2.0
* 8 in 1 Card Reader
* LAN 10/100 Mbit
* Windows XP Home Edition
* Microsoft Works
* Norton AntiVirus 2004
* 12 month warranty
 
Now, I realize it is a no-name PC (Medion) running Windows XP Home, but what
you get for the price is amazing.  And PC World magazine gave this system
four out of five stars.

How is Apple supposed to compete with this?  I've been waiting for a deal on
a computer to be the "center of my digital hub" now, but even with an eMac
at $799, I'd still have to add AirPort, a SuperDrive, wireless keyboard and
mouse, a card reader, and EyeTV to even come close.  I'm seriously
considering one of these Medions to fill the task until Apple comes out with
something similar.

I just wish Apple would realize that there is a market for two things: (1)
lower cost machines without monitor, (2) a digital hub machine like the
above.

It's really hard to push people to the Mac, and I have done that five times
in the past two years, but $799 PCs with all the above features make it
*really* hard.

What do you think?

Chris Malanga
cmalanga at bgsualumni.com