Data Source


Dataset Overview

The goal of this analysis is to understand whether a laptop’s technical specifications meaningfully influence its market price and to what extent individual hardware components contribute to pricing differences. The dataset originates from the IBM Developer Skills Network and is used in their data science curriculum. It contains 237 laptop records with specifications and prices. While the dataset resembles what a small electronics retailer might maintain, it is not tied to any specific store and is therefore intended for educational analysis.

By exploring variation in processor speed, memory, storage, screen size, weight, the report examines how these features shape value across a diverse set of devices. To quantify these relationships and generate actionable predictions, we develop a linear regression model that links hardware characteristics to price, allowing us to assess which specifications matter most and how strongly they drive cost. This modeling approach provides both interpretability and predictive insight, forming the foundation for evaluating pricing patterns in the laptop market.


Laptop Summary Statistics


Statistic CPU_frequency Price Weight_pounds Screen_Size_inches
Min 1.20 527 1.786 12.00
1st Quartile 2.00 1066 3.246 14.00
Median 2.50 1333 4.106 15.00
Mean 2.36 1462 4.106 14.67
3rd Quartile 2.70 1777 4.850 15.60
Max 2.90 3810 7.937 17.30


The summary statistics provide a clear snapshot of laptop pricing and specs. CPU frequencies average 0.814GHz, with most values clustering between 0.69 and 0.93GHz, indicating that the market is dominated by mid performance processors aimed at everyday productivity. Prices range widely from budget models(around 527 dollars) to premium devices approaching $3,800, reflecting a highly segmented market. Laptop weight varies from ultra light 1.8 pound designs to nearly 8 pound devices, highlighting substantial differences in portability, while screen sizes center around 15 inches with a spread from 12 to 17.3 inches, suggesting a mix of devices tailored to mobile consumers such as corporate professionals and students.














Which Laptop Screen Type Shows Market Dominance?



















Predicting Laptop Price



Multiple Linear Regression Results
## 
## ===============================================
##                         Dependent variable:    
##                     ---------------------------
##                             log(Price)         
## -----------------------------------------------
## ManufacturerAsus               0.049           
##                               (0.077)          
##                                                
## ManufacturerDell             0.247***          
##                               (0.063)          
##                                                
## ManufacturerHP                0.150**          
##                               (0.065)          
##                                                
## ManufacturerHuawei             0.110           
##                               (0.236)          
##                                                
## ManufacturerLenovo           0.204***          
##                               (0.064)          
##                                                
## ManufacturerMSI              0.356***          
##                               (0.134)          
##                                                
## ManufacturerRazer            0.788***          
##                               (0.244)          
##                                                
## ManufacturerSamsung            0.197           
##                               (0.130)          
##                                                
## ManufacturerToshiba          0.335***          
##                               (0.080)          
##                                                
## ManufacturerXiaomi            -0.255           
##                               (0.233)          
##                                                
## Category                     0.105***          
##                               (0.024)          
##                                                
## GPU                          0.101***          
##                               (0.028)          
##                                                
## OS                           -0.275***         
##                               (0.067)          
##                                                
## CPU_core                     0.060***          
##                               (0.015)          
##                                                
## CPU_frequency                0.168***          
##                               (0.040)          
##                                                
## RAM_GB                       0.038***          
##                               (0.007)          
##                                                
## Storage_GB_SSD                0.001**          
##                              (0.0005)          
##                                                
## Weight_pounds                -0.910***         
##                               (0.174)          
##                                                
## Screen_Size_inches           -0.270***         
##                               (0.048)          
##                                                
## Laptop_Portability           0.060***          
##                               (0.011)          
##                                                
## Constant                     9.507***          
##                               (0.709)          
##                                                
## -----------------------------------------------
## Observations                    238            
## R2                             0.669           
## Adjusted R2                    0.639           
## Residual Std. Error      0.224 (df = 217)      
## F Statistic          21.931*** (df = 20; 217)  
## ===============================================
## Note:               *p<0.1; **p<0.05; ***p<0.01


The regression model estimates the relationship between laptop price (in logarithm form) and key hardware specifications, including GPU, operating systems, number of CPU cores, RAM (GB), weight (pounds), screen size (inches), CPU frequency, laptop category, and manufacturer. Because the dependent variable is in logarithmic form, the estimated coefficients can be interpreted as the percentage change in laptop price associated with one unit change in the corresponding predictor, holding other variables constant.

An R-squared of 0.669 indicates that approximately 66.9% of the variation in log laptop prices is explained by the included predictors. The overall F-statistic is statistically significant (p-value = 2.2e-16), meaning that brand, hardware specifications and laptop category effects collectively play a meaningful role in determining laptop prices.

Most individual coefficients are statistically significant, indicating that key key performance attributes (processing power, memory, and hardware specs) play a crucial in laptop price formation. Also, it is worth noting that 4 manufacturers out of 10 don’t show statistical significance, suggesting that brand effects exist, but not all brand commands a statistically price premium, after controlling for hardware specs.

Overall, the results align with economic intuition, that is high performance specs, certain laptop brands, and laptop category are associated with higher market prices, and this model captures a large portion of observed pricing variation.




Model Diagnostic




There are no symmetric or funnel shape observed in the residuals, indicating that linearity assumption is likely satisfied in the model and therefore is capturing the main relationships well enough. As for the actual vs predicted plot, the points are closely scattered around the diagonal line, suggesting that the model predicts the outcomes well with minimal errors.




This is What the Data Suggests Overall


Dell ranked first in the laptop listing due to its broad product portfolio and strong market presence across both consumer and enterprise segments. With 71 models represented, Dell’s dominance reflects its strategy of catering to diverse user needs, its emphasis on customization and after-sales support, and consistent innovation, making it “a go-to brand for many users”. Holding a second place in laptop listing, with 52 models, Lenovo benefits from its “global reach and aggressive pricing strategy”. Lenovo models combines durability with exceptional performance, making it extremely popular among professionals and educational institutions.

Additionally, Lenovo’s outstanding market presence in both Windows and Chrome OS, with a strong foothold in Asia and Europe, helps it maintain a competitive edge. In third position, with 49 models listed for sale, is HP, as it is a major player in the laptop market thanks to Pavilion and Envy lines, which balance affordability and design. Despite having a a strong market presence and broad portfolio: Pavilion and Envy for everyday users, EliteBook and ProBook for business users, and Omen for gaming, the company “refreshes its models in a more conservative, incremental way compared to Dell’s aggressive diversification or Lenovo’s rapid global expansion”. Consequently, Dell’s broader segmentation and Lenovo’s international momentum slightly outpace HP’s offering, even though it remains a trusted and crucial manufacturer.

As for the most expensive laptop, Razer models clearly dominate the market with a striking average price of $3,301 per storage because the brand’s deliberately positions itself as a “premium gaming and creative hardware manufacturer”. According to Easy Tech Solver, Razer’s pricing reflects not just performance specs, but also the cost of high-end materials such as aluminum unibody chassis, custom thermal engineering, and sleek minimalist design. Indeed, these features or specs elevate the build quality and aesthetic appeal, but also Razers’ production costs. Moreover, Pick Laptop commented that Razer often includes “high-refresh-rate displays, RGB lightning, and ultra-thin form factors”, all of which are expensive to manufacture and maintain. Furthermore, Razer produces fewer models with a focus on luxury branding and exclusivity, which elevates cost per unit even further. This combination of design, branding, and complex engineering explain why Razer models leads in price per storage.