Abstract
Asus' Eee PC low-priced notebook PC was launched on October 16, 2007, ahead of the new low-priced laptop that is being developed as part of the One Laptop Per Child initiative. The Eee PC's stylish looks, lightweight design (it weighs just 920 grams), and streamlined but comprehensive hardware and software capabilities have attracted a great deal of attention, and sales of the new laptop have been brisk. This report will analyze the positioning of the Eee PC and other low-priced notebook PCs, as well as their significance for Taiwan's PC vendors and the computer industry as a whole.
Serious Short-term Impact on High-end Models
When a new, low-priced competitor appears on the scene, the impact on the market is usually very rapid. Given the high price of most notebook PCs, the emergence of new models that cost only around US$100 is bound to attract the interest of consumers. In the short term, the appearance of the new ultra-low-cost notebook PCs is expected to have a negative impact on sales of high-end models. However, once people become more aware of the advantages and disadvantages of low-cost notebook PCs, those people who need high-performance machines will go back to buying high-end notebook PCs, creating two distinct segments within the notebook PC market.
Targeting Different Market Segment
For work applications, conventional notebook PCs are still far more efficient than ultra-low-price models. The two notebook PC types are basically targeting different segments of the market. Conventional notebook PCs will maintain their status as the basic workhorse for both work and personal applications. Low-priced models will attract buyers from among consumer groups that would not normally consider buying a notebook PC; they could also serve as an easy-to-carry second or back-up notebook PC for existing notebook PC users. For example, a low-priced notebook PC would be ideal for taking with you on vacation.
Driving Growth in the Worldwide Notebook PC Market
The ultra-low-cost notebook PC models launched towards the end of 2007 appear to have been very effective in attracting the interest of new groups of consumers who in the past would not have considered purchasing a notebook PC. For someone who has not used a PC before, the ultra-low-cost laptop offers an attractive "way in" to computing. In the case of students, who will need to starting using a PC eventually, the availability of low-cost notebook PCs can encourage them to purchase a PC earlier than they would otherwise have done. A collaborative effort by international organizations, government agencies, and enterprises could also create significant potential for low-cost notebook PC adoption in developing and low-income nations. Users of low-cost notebook PCs will eventually want to upgrade to conventional notebook PCs, so there is no reason for vendors of high-end notebook PCs to see the new low-cost models as a threat. By boosting notebook PC adoption rates throughout the world, low-cost notebook PCs will have a positive rather than negative impact on the development of the notebook PC market.
Appendix
List of Companies