KITCHENER, ONT. – The coming launch of Vista is creating unnecessary alarm amongst resellers of end-of-lease computer equipment. The belief is that Vista will so significantly increase the hardware threshold that used sales will plunge as older equipment becomes obsolete.
In practice Vista will turn out to be a positive force responsible for a major growth cycle within the used industry.
The used industry took its first steps during the Y2K scare of the late nineties. In the 24 months prior to the calendar change, companies rushed to test and replace hardware ahead of scheduled replacement cycles, and the market was flush with used equipment.
Contrary to common sense, this tremendous increase in supply stabilized instead of devastating prices. The used industry was missing the necessary maturity at the time to follow expected supply and demand rules. In fact, demand increased with the influx of product as companies created a channel to resell used equipment, and new buyers entered the market now that enough products had become available for regular trade.
In simple terms, the used market grew and gained legitimacy with resellers and buyers as stock was more consistent and commonly available.
Vista will play a similar role. It is the most compelling reason users have for upgrading hardware in years.
We project availability of one- to two-year old machines to increase by 10 per cent by the end of this year, and continue to increase over 2007 by up to 25 per cent as the platform stabilizes and companies shorten leases and speed up replacement cycles.
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