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newsobserver.com, Raleigh, NC Site Updated:  2:09 PM | WEDNESDAY, FEBRUARY 11, 2004 
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Comcast offers to buy Walt Disney Co.
Cable TV giant Comcast Corp. offered early today to buy Walt Disney Co. for stock valued at about $54 billion.

Truck with mortar rounds wrecks
An 18-wheeler flipped this morning at the N.C. National Guard headquarters in West Raleigh.

Three hurt in nursing home fire
Three people were injured today in a fire at a nursing home in Laurinburg that was the scene of a fatal fire eight years ago.

Kerry wins Va., Tenn.
Democratic primaries in the two southern states give the Yankee senator victories in all U.S. regions. Edwards places a distant second in both states.

N.C. study: Bases add $18 billion
Military bases contributes twice as much to the state's economy as tobacco, the traditional Tar Heel moneymaker, a study reports.

Battle for young minds
Former military personnel succeed as teachers in at-risk schools.

Pack in a groove
NCSU buries Florida State with 3-point barrage; No. 1 Duke is next

Tar Heels falling on hard times
Loss at Georgia Tech leaves North Carolina scrambling in ACC at 4-6.

Pre-owned PCs catch on
Market, customers benefit from slower pace of technological change.

Shrimpers lose to imports
Prices drop at boats, not retail.


Wednesday, February 11, 2004 9:26AM EST

Pre-owned PCs catch on
Market, customers benefit from slower pace of technological change

By VICKI LEE PARKER, Staff Writer

Computer shoppers willing to forgo the smell of new styrofoam and plastic can easily save hundreds of dollars on equipment.

As technology and the process of refurbishing personal computers improves, more consumers are taking a second look at used and refurbished PCs that may not have the latest and greatest technology, but still meet their computing needs.

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Even with prices for new PCs dropping to record lows, a growing number of customers are turning to discount computer stores and Web sites to find low-price laptop and desktop computers.

Owners of local stores such as Advantage Computer in Cary and TigerDirect in Raleigh say that many customers buy used computers for their children. Others are first-time computer buyers who don't want to spend a fortune.

Some want a backup PC. And an increasing number buy them solely to access the Internet while keeping their personal files on a separate computer, safe from viruses and worms.

As consumers have become more familiar with computer terms and technology, they are less intimidated about buying used items, said Bob Whittaker, Raleigh store manager at TigerDirect, a Miami-based chain. They know what questions to ask and how to shop around, he said.

Hortense Tapp of Apex said she was tired of her husband's big, old computer taking up space in their home.

Tapp, 78, wanted a small laptop that she could handle easily. She shopped around at Best Buy and Circuit City. But six months ago, she decided to buy a refurbished laptop from Advantage Computer for about $500.

"It was the best deal in town," she said. "It does everything the other one did. I can send my e-mail messages, look up the weather and flood warnings. It was well worth it to me."

Knowing the right questions to ask is critical in buying a used computer, said Robert Davie, founder of ITParade.com, a

business-to-business Web site based in Cary where dealers sell used computer equipment, including through auctions.

He said customers should ask about the return policy and what type of warranty is offered. Warranties offered through a store or the manufacturer are fine, according to most computer experts, but if the manufacturer is located out of town, the customer could pay shipping charges if the equipment needs repairs.

Davie also suggests that shoppers stick to well-known brand names such as E-machines, IBM, Dell or Compaq.

Overall, buying a used computer isn't nearly as risky as it used to be, Davie said. "The process of refurbishing has gotten to be fairly standard. Typically a computer is going through the same diagnostics and testing process no matter where it is."

As a result, the market has steadily grown about 10 percent a year, said Davie, whose company also tracks used computer sales. Davie estimates both commercial and individual sales to be about $20 billion a year.

Improved technology has also boosted used-computer sales, Whittaker said.

"Years ago, if you bought a year-old computer, it was probably far behind the newest technology," he said. "Now a system from a year ago is still fast and can run most of what you want it to."

Such improvements have helped to make stores such as TigerDirect successful. Whittaker said the company opened its first Raleigh store in December. So far, the demand has been so strong that it has had to increase its inventory delivery from once a week to every day.

"The store has been doing much better than we expected," Whittaker said -- so well that TigerDirect is considering opening another store in the Triangle this year, he said.

Rick Freeman, co-owner of Computer Options in Raleigh, which sells used computers, said business has remained robust even though computer prices have dropped.

"Demand has increased," Freeman said. "People need them for their kids' homework and some people buy it to protect their main computers from Internet viruses."

Freeman said that he has a separate computer at home that he uses to go online. He keeps his important business and personal information on his main computer.

Charles Abney of Durham has bought four refurbished computers in the past two years, enticed both by the prices and the quality of the equipment. "I've bought two for my daughters, one for myself and one for a friend," Abney said.

He paid about $400 total for his daughters' two computers and about $300 for his own. So far, he said he hasn't had any problems with the computers. Even if money wasn't a factor, Abney said he would still buy a refurbished computer.

"It does the same as a new one, and if I want something extra, they can add it on," he said.

Phil Smith, general manager of Advantage Computer in Cary, said he has seen a lot of repeat business from his customers. Still, refurbished computers aren't for everyone, Smith said.

If someone is looking for a computer for children to play the latest computer games or to perform advanced graphics programs, Smith will suggest they buy a new PC.

Although used equipment doesn't have all the bells and whistles of a new PC, there are advantages to buying older computers, said Freeman of Computer Options.

Most retailers of used computers buy PCs from large corporations, and then test, repair and resell them. PCs designed for corporate customers generally are studier and last longer.

"They are built to run in the office eight hours a day, five days a week," Freeman said. "They have a large-capacity power supply instead of 150 to 300 watts."

That means the components are not being stressed as much and the system can be upgraded more easily. Some have better cooling systems with three or four fans that also cause less stress on the electronic equipment and help it last longer, he said. In addition, most refurbished computers come with an operating system such as Windows 98 or XP.

Still, for many PC shoppers, it all comes down to price.

Mike Turner is an engineer at Honeywell who lives in Cary. He recently bought a desktop computer from Advantage Computer. He said he saved about $1,200 by buying a refurbished PC after his old one crashed.

"It doesn't bother me that it doesn't look fancy. I only spent $300 and I'm happy about that," he said. "My needs were pretty basic. I'm not burning DVDs or CDs."

Turner said that he uses his computer to manage his personal finances and taxes. "This made sense to me. I've got other things to spend my money on," he said.


Staff writer Vicki Lee Parker can be reached at 829-4898 or mailto:vparker@newsobserver.com



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Hortense Tapp plays solitaire on her refurbished IBM ThinkPad at her home in Apex. She bought the laptop from Advantage Computer in Cary.



Phil Smith, owner of Advantage Computer in Cary, carries a computer for customer Lavasha Scott.
Staff Photos by Mel Nathanson

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