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Small PCs Look To Flourish During Slow Economic Times

Posted on: Monday, 2 June 2008, 16:00 CDT

Technology buyers are likely to focus on smaller, low-cost PC’s at the world’s second largest computer fair being held this week in Tapei. A slow U.S. economy is forcing consumers to cut back on spending.

High fuels costs and rising prices are making lenders less willing to offer credit in the U.S., leaving some consumers reluctant to buy new expensive personal computers and gadget heavy mobile phones.

Computer and component makers are hoping cheaper, low-cost PC’s like Asustek Computer Inc's Eee computer, aimed at emerging markets and buyers of additional computers, will keep growth on track.

These PC’s have longer battery lives and wireless connection features. They will be competing with a line of eco-friendly computers with slimmer, energy-efficient displays and solar power systems, designed to cut power consumption.

“We really have to watch closely on the buying interest because that is going to be a signal on how the recovery's strength will be in the second half,” said Kevin Chung, manager at Taiwan's Jih Sun Investment Consulting.

Asustek Computer, which makes the successful Eee PC, will display new, wider-screen models that allow users to do everything from storing video clips in shock-proof flash memory and surfing the Web in wireless networks.

Acer Inc, Taiwan's most famous PC brand, is introducing similar low-cost PCs as it expands into fast-growing emerging markets, including China and India.

A spokeswoman for Acer said they would launch a notebook different than the ones they've sold before and targeted at a new consumer segment.

Intel Corp will also be promoting its new processors, as the U.S . chip giant sees a big market for ultra low-cost PCs that can fit in one's pocket and for the netbook, a PC selling for about $250.

A total of 1,725 exhibitors, including foreign technology companies, such as Intel and AMD, will attend the June 3-7 show in Taipei. The show’s organizers said it was a record-high 29 percent increase from last year’s show.

Semiconductor and display makers are currently scaling down their capital spending to ease pressure on the supply side during a time when a new batch of computers, mobile phones and game machines have just hit the stores.

Worldwide PC shipments are expected to rise 13 percent to reach 296 million units in 2008, and will grow about 10 percent in each of the next two years, according to predications by research firm IDC.

The organizers said, for the first time, Computex buyers can have a quick tour by using trial laptops that have an ultra-high-speed Internet technology, WiMax, built in when they take free shuttle buses.

Telecom operators and PC makers in Taiwan hope WiMax technology will be the fourth-generation mobile standard of choice.

IDC says global spending on WiMax infrastructure, including base stations and equipments, is likely to grow to $3.5 billion in 2011, more than tripling from 2006.

"WiMax has been getting much chatter and with players like Sprint and Google coming in, it’s a huge push for the technology," said Rosemary Ho, Chairman and CEO of Global Mobile Corp, a WiMax license holder in Taiwan.

Intel hopes WiMax technology will take off soon despite many large operators going with a rival technology, known as Long Term Evolution (LTE).

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On the Net:

Asustek Computer Inc

Acer Inc

Intel Corp

Source: redOrbit Staff and Wire Reports

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