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Increases in component prices are pushing up PC prices in the US market. For the first time in nine years, in the last quarter of 1999, prices went up rather than down. This mimicked the behaviour of the DRAM market, where a lack of supply saw prices rocket. According to the research firm PC Data, the average price of a PC in the US rose from $790 in September to $844 in December. These averages were illustrated with the following examples. Hewlett Packard has increased the price of its bottom of the range PC from $549 to $649, and Compaq slapped $150 on the price of its entry-level machine, bringing its price up to $699. Prices are for PCs without monitors, and don't include any channel rebates or discounts. ®

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