Low Price PCs: Start of a new revolution (maybe)

Digitimes reports that both HP and Asustek are going to launch their low cost PCs in Hong Kong. today. Digitimes says,

With Hewlett-Packard (HP) launching its Mini-note PC in Hong Kong today (April 15), Asustek Computer has also decided to launch its Eee PC 900 in the same region and on the same day, according to channel sources.

Digitimes continues,

After the initial launch in Hong Kong, Asustek will launch its Eee PC in Taiwan, Japan, China, Europe and North America in the later half of April.

The development of low-cost computers is good for Taiwan. The HP variant is apparently based on a VIA Technologies platform. Furthermore, according to China Economic News (CENS), Dell's decision to move into low-price PCs is one reason why Compal, another one of Taiwan`s leading manufacturers of notebook computers, will boost production in China. According to CENS,

Compal Electronics Corp will expand production capacity at its fourth plant in Kunshan of Jiangsu Province, mainland China. The expanded plant will begin mass production sometime in the second quarter of this year to facilitate delivery of low-priced PCs ordered by the U.S.-based Dell Computer Inc., along with the growth in shipments of NBs.

However, Compal president J.T. Chen noted

...his company would introduce low-priced computers sometime in the second half of this year. But Chen noted that shipment of low-priced PCs would account for less than 10% of the company`s total shipment this year.

Commenting on the recent development in this market, CENS observes:

Seeing the successful introduction of the budget-priced "Eee" PC by Asustek last year, Hewlett Packard will introduce the US$500 Mini-Note NB equipped with 8.9-inch screen and VIA Technologies` C7-M microprocessor at the end of April; while Acer will debut its low-priced, Quanta Computer-manufactured NB equipped with Intel Corp.`s "Atom" microprocessor sometime in June.

Digitimes further reports that low-cost PCs are also going to drive the demand for touch panels in 2H 2008.

Low-cost notebooks, such as Asustek Computer's Eee PC, are expected to boost demand for medium-size touch panels in the second half of the year, as adoption of touch panels by these systems will grow fast, according to industry players and observers.

With small-size touch panels already seeing massive adoption by handsets and GPS devices, 5-10-inch touch panels are promising to become a big hit among high-end ultra mobile PCs (UMPCs) and mobile Internet devices (MIDs), as well as low-cost PCs, the sources remarked.

I guess its all good for Taiwan companies. They are all involved in the development and manufacture of these products and the associated components.

(Article 1: HP and Asustek bring low-cost PC battle to Hong Kong
Article 2: Compal Ups Production Capacity in Kunshan of Mainland China
Article 3: Eee PCs and other low-cost notebooks to boost touch panel demand in 2H08)