The March of the Low Cost PC

Quamet reports Taiwan's Quanta computers has won a big order from Sony for low cost PCs. According to Quamet:

Quanta Computer Inc (2382.TW) has secured contracts for 10-inch budget personal computers (PCs) from Sony Corp, the Commercial Times reported.

Without identifying sources, the report said the Sony laptops will adopt the C7-M microprocessor from VIA Technologies Inc (2388.TW) and liquid crystal display panels from AU Optronics Corp (2409.TW).

This is indeed good news for Quanta and further highlights the strength of the new low cost PC market. In ASUSTek Changes the Game we noted how ASUSTek "changed the perception of what a computer can and should be." Indeed. The market still has legs.

iStockAnalyst has a nice piece describing the evoloution of the low cost PC market:

Last October, when Taiwan's Asustek Computer launched its first Eee PC - whose new acronym stands for "Easy, Exciting and Economic", instead of the earlier "Easy to learn, easy to play, and easy to work" - it did not expect the low-cost PC to become the latest buzzword in the PC industry.

Bigger rivals such as Acer, the world's No. 3 computer maker, also underestimated the threat from smaller, lower-margin laptops, casting doubt over whether users would buy such "simple-functioning machines".

But then, the US$200 (RM660) Eee PC 701 is much cheaper than the US$1,000 price tag for an entry-level laptop.

Well, figures say it all. Asustek statistics show that it has sold one million units of the Eee PC since its debut until March.

The new Eee PC 900 has an 8.9-inch screen, 1.3-megapixel camera and 12- gigabyte or 20GB solid-state drive. At NT$15,988 (RM1,705), this model comes with either the Linux or Windows operating system.

Surprisingly, the Linux model, which accounted for 60 per cent of the first sales, is well-received by Taiwanese consumers, said Asustek's product manager Jose Liao.

"The overall user-friendliness and other applications bundled in will matter more to consumers when choosing low-cost computers. We leave the choice to them." Indeed, Asustek has a slew of rivals closely tailing its back. Other Taiwanese computer makers such as Elitegroup Computer Systems, Micro-Star International and Gigabyte Technology have all unveiled plans to grab a slice of the pie.

At the recent Computex Taipei trade show, Acer introduced its first ultra-low-cost laptop armed with Intel's Atom microprocessor. Also lighter than 1kg, this machine makes a good fit for those looking for a handheld device with PC-like Internet experience, said company president Gianfranco Lanci.

Foreign bigwigs have not been spared from the frenzy either.

In early April, US-based Hewlett-Packard introduced its first low- cost notebook, the 2133 Mini-Note, aimed at the education market. Hitting stores with prices that start from NT$17,900, the machine weighs 1.2kg, is 33 millimetres thin and has an 8.9-inch screen. Wireless is built-in, and Webcam is optional.

Yes, many companies it seemed did underestimate the threat from the low cost PC model. The early-mover advantage gained by ASUSTek in this market has helped them strengthen their position in the global PC market and helped them to become more competitive than ever. What amazes me is no one thought of this idea earlier! Well, perhaps they did, but no one ever took the initative to develop these platforms. This sector is rapidly becoming as competitive as the other PC sectors and ASUSTek will have to continue to innovate to stay ahead.

But for now, the rapid growth in the low cost PC markets is good news for the notebook contract manufacturers like Quanta, Wistron and Inventec.They will surely receive a lot of orders.

Quamet: Taiwan's Quanta wins Sony order for budget laptops - report
iStockAnalyst: Low-Cost Computers Gaining Ground