We were recently asked why laptops continue to be far more expensive than similarly configured desktop machines. The question came from a library desiring to make laptops available for check-out to patrons. However, when Dell, the library's primary supplier of PCs, quoted a 300 MHz laptop at more than double the price of its comparable desktop machine, the library delayed implementation of the new patron service.
After some research we determined that the most obvious difference is the use of more expensive LCD screens in laptops. This accounts for approximately 25 percent of the difference. Less obvious, and difficult to explain, is the fact that Intel charges more than double the price for a processor when used in a laptop, accounting for another 15 percent of the difference. Batteries also add to the cost, accounting for another 10 percent of the difference. A compact keyboard accounts for another five percent.
However, the biggest single factor is that margins on laptops are higher-as high as $1,500 on a $3,500 unit.
