When buying a computer, is almost new as good as new? Consumers answering "yes" to this question could pick up some of the hottest deals on PCs this holiday season, say analysts and PC makers. These best buys are not used systems going to the highest bidders on eBay or scratch-and-dent models at the local computer store. They are instead refurbished, or reconditioned, systems-computers returned for one reason or another that have been fixed, but can no longer be sold as new. Savings range from 10 per cent to 30 per cent-or more-and companies such as Dell Computer and Gateway sell them with the same warranty and customer support plans as new systems. For this and other reasons, "they're better than new," said ARS analyst Mr Matt Sargent. "The savings are huge, maybe 20 to 30 per cent over an identical, new system." PC makers find that consumers and small businesses, more than any other customer segment, buy refurbished systems. "Refurbs" are popular with people buying for the second time, looking for multiple systems, or working within a fixed budget. Not all refurbs start out as defective or returned systems. Some simply are cancelled orders. Others are overstocks sold with reconditioned units at a discount.
But once labelled refurbished, the systems are reconditioned-checked over for defects and refreshed with the latest software-then sold at a deep discount. In some ways, refurbs are the bane of the computer industry.
With margins already razor thin, returned systems are basically sold at a loss, with the PC makers or retailers looking to recover as much of their cost as possible. Big business From another perspective, refurbs are big business and are a good way for PC makers to hook new customers on their products. But PC manufacturers are reluctant to talk about how good refurbished sales are for fear of jeopardising the business in new systems.
Kim Stevens, head of product management for online retailer PC Connection, spoke cautiously about the benefits of refurbished sales. "We sold 7,000 units during the first three quarters," she said. But Stevens would not put that in perspective of total sales for the period. Dell has done so well selling refurbs that the company closed its outlet store in Austin, Texas.
Demand outside the area compelled the company to expand to a solely online operation. In arrangement with India.CNET.com
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