Brand-name Products Still Center of Attention
Computex 2008 featured the four WING (WiMAX, ICT Crossover, New Generation Notebook, Green IT) themes, of which WiMAX is most closely associated with notebook PCs. However, despite the maturity of WiMAX technology, the future market size of notebook PCs with built-in WiMAX capability is still unclear, largely due to insufficient infrastructure worldwide. In terms of the Green IT product theme, HP, Dell, and Asus continued to promote the idea of Green IT products, but new products exhibited only focused on battery life extension. MSI's products played a key role in this sector. Other PC makers, however, did not launch environmentally friendly products. Regarding industrial design, products showcased at Computex 2008 had already debuted at the CES or CeBIT exhibitions, and showed no significant changes.
At the exhibition, products rolled out by brands such as Acer and Asus still caught most of the attention, while products debuted by other OBM and ODM companies showed no outstanding breakthroughs in terms of industrial design and functionality, mainly due to the two following factors:
First, Computex is mainly a B2B trade show. Second-tier ODM makers face stiff competition and have to actively participate in the exhibition to attract more buyers. Buyers mostly are channel players or companies from emerging markets, and markets in which these buyers operate lack maintenance or after-sales service. Second-tier makers have to roll out more mature and stable products. Upon buyers' requirements, they can then provide customized products.
Second, the global notebook PC market is maturing, with its shipment growth slowing down. Innovations in product design and value-added functionality can no longer stimulate consumer purchases as they used to. As a result, cutting-edge innovations were not much seen during this year's Computex.
Overall, products launched by vendors other than the major brands at the exhibition had difficulties gaining attention. As the notebook PC market is maturing and becoming more stable, the influence of brands on the market is becoming more important. If other vendors intend to boost their brand images and product value, besides seeking for breakthroughs in functionality, they have to provide conspicuous designs to promote product visibility.
Competition between Mainstream Notebook PCs and Mini Notebook PCs
One of WING's main themes was new generation notebook PC, and low-price mini notebook PCs were the focal point of the exhibition. Due to the trend of lightweight, compact, and small form factor design, not many mainstream products with screen sizes ranging from 10.4" to 11.1" were launched during this year's exhibition. This was due to the fact that although mini notebook PCs and notebook PCs with screen sizes between 10.4" and 11.1" have their own product positioning, the screen size between them is not significant. However, the price gap between these types of products is evident, which caused confusion among customers. As a result, PC makers have been reluctant to launch or showcase 10.4" and 11.1" mainstream products.
During this year's exhibition, PC makers tended to launch high-end mainstream products with screen sizes over 15" and advanced audio and video functionality, reflecting the threat to mainstream notebook PCs posed by low-price mini notebook PCs. Erosion by low-price mini notebook PCs on the market share of mainstream models is possible. Pressured by the numerous low-price mini notebook PCs, PC makers need to attempt to further define the product positioning and segmentation of low-price mini notebook PCs and mainstream notebook PCs.
Competition between Asus and Acer
Major development trends of notebook PCs include lightweight, slim, compact, sleek, low-price, entertainment, communications, and green design. The growth momentum of the consumer models has significant potential in 2008 and beyond. During Computex 2008, both Acer and Asus launched models with rich entertainment functions. These models show four key developments: first, panels with aspect ratio of 16:9; second, enhanced Dolby sound technology and improved output equipment; third, built-in Blu-ray disc combo; fourth, unique designs for multimedia user interfaces. With relatively large screens and considerable weight, along with less than three hours battery time, the products of Acer and Asus are aimed at replacing desktop PCs. Mobility features of these notebook PCs are thus less conspicuous.
Acer has been long adopting Dolby digital sound for notebook PCs to increase product diversification, with Asus closely trailing behind. In addition, Acer also first rolled out a Blu-ray Disc combo notebook PC, with Asus and MSI following quickly. Acer is gradually losing its uniqueness and pioneering advantages.
Due to the limitations of Blu-ray content applications, it is still difficult for models supporting Blu-ray technology to reach economies of scale. Showcasing technology capabilities and testing the market reception for Blu-ray products are the major objective of PC makers with such technology at this point in time. Regarding multimedia user interfaces, Acer and Asus incorporate touchpad interfaces into their notebook PCs. Even though such design is not a new innovation, it is likely to increase product diversification for PC brands when other makers' products also support technologies such as Dolby or Blu-ray.
Overall, in a bid to fulfill increasing consumer demand for notebook PCs in terms of functionality, multimedia-oriented models will be deployed with improved display quality, strong sound effects, and intuitive user interface design. The rollouts of such models by Acer and Asus are expected to inspire other makers to follow suit.