>When I worked in Evesham, we could get £3000 for an Amstrad PC2386, and
>that had a respectable margin of profit. Now we see systems fetching £200-300 plus vat.
Well no. Not really. They aren't the same comparable systems.
Computers are cheaper, but not by such a large margin.
I did once spend nearly £2000 on a pc, but it was specced way OTT compared with the average 4mb ram and tiny HD of the day. It had one of the first 3d graphics cards, a scsi HD with 2 gb storage and so on. Today, I'd probably spend the equiv of £999 for a gaming PC. So, I'd say about 50% of the cost years ago, not 1/10th.
You can still sell PCs that cost thousands and many gamers and others that want / need the performance will pay that. But obviously not from spammers like Evesham.
e.g nvidia - that's a company that simply wouldn't exist if everyone was buying £199/299 computers, which generally have built-in graphics. They exist because enough want a gaming pc with an add in card and thus they will sell shedloads of cards like ti4200 / 7600gt and more recently 8800gt, and a few top end cards too for £400 or £500 a pop, that still have big margins.
If Evesham wanted the bigger margins they should have done what the niche players who appeal to the gamers and overclockers do to attract that market. If they wanted the low/mid range they similarly should have appealed to that market. At the time the voodoo 3 came out I did venture into Evesham and was at least more impressed at their PCs than the typical UK retailers, but nevertheless, I still bought parts and built two computers, one for me and one for my SO...and I've done the same ever since every few years + a couple of ram / HD / graphics card upgrades inbetween and never been near Evesham.
It seems instead that they bet the farm on some asinine government scheme to flog computers, supposedly tax free or something, for more than you could buy them for elsewhere. Well d'oh.
When you were flogging 386's for several grand, folk like myself, without 3 grand to spare, were buying 8086's for a few hundred quid from folk selling 2nd hand kit with low margins. I bought a ps2 model 30 for example. The company I worked for bought about 4 or 5 Compaqs with wordperfect for that kind of silly money for each Directors secretary [for real computing we were programming and using 32 bit vax/vms mini computers and had tons of £100 or so terminals - and, fairly unique for the time, everyone used dec's email]
Today, like most places, I suspect they've a pc on every desk and shedloads more PCs. Thus the market is just as big, if not bigger. They probably spend far, far more on IT. It's just that instead of DEC and Compaq selling 4 computers each for a few thousand [several few thousand in the case of DEC], someone sells them a few hundred or thousand PCs and each one has an OS / office / email and so on.