Although not the first company to be involved with the low-cost computer campaign, Asustek, as a leading total solution provider for computers, is the first to mass-produce its new and relatively cheaper laptops code-named "Eee PC." The new machines hit the market on Oct. 16, attracting interest from major rivals as well as consumers. Asustek Chairman Johnny Shih was present at the new gadget's launch, describing it as a finished product that could satisfy end users in aspects of quality, price, appearance and technology. The company has postponed its release twice because of a prolonged mass-testing program that saw over a thousand personnel put the product through its paces, Shih said.
Asustek's groundbreaking computer is compact and highly portable, boasting a 7-inch liquid-crystal-display screen and only 0.92 kilogram in weight. It is equipped with Intel's central processing unit and chipset, a Linux operating system, wireless fidelity technology, and memory ranging from 256 megabytes to 1 gigabyte. Prices go from US$245 to US$420. The company created "Eee PC" with the goal of producing a computer that is easy to use for work, games and learning, Shih noted, adding that target consumers are not only grandparents, children, housewives and people in developing countries, but also to institutional clients such as domestic and foreign governmental organizations.
But before Asustek unveiled its low-cost computer plan, the non-profit One Laptop Per Child Foundation had advocated its OLPC project in 2005. Composed of faculty members of the MIT Media Lab, the OLPC aims to ensure that "all school-aged children in the developing world are able to engage effectively with their own personal laptop, networked to the world." The Taoyuan-based Quanta Computer Inc.--the world's largest contract manufacturer of notebook computers--was chosen to assemble the low-cost laptops under the auspices of the OLPC project. Quanta's machine, code-named "XO," is Linux-powered, with a 7.5-inch LCD screen, 0.9 kilogram in weight and a price tag of around US$188. The prototype is based on a dual-mode display, one a regular light-emitting diode while the other a sunlight-readable mode that turns black and white under strong sunlight.
The other low-cost computer is Classmate PC, developed by Intel for students in emerging markets. It weighs 1.3 kilograms with a 7-inch LCD screen and costs around US$400. It has a "rugged, lightweight and easy-to-carry design, integrated handwriting hardware technology, and software stack with validate educational applications," according to its website. Classmate PCs are mainly manufactured by Elitegroup Computer Systems Co., another Taiwan's provider of total solutions for computers.
According to the Taipei-based Topology Research Institute, the PC market in general has matured, with profit margins steadily decreasing to the point where many computer manufacturers are now focused on identifying the next niche market. The relatively low popularity of computers in new emerging markets, such as China and India, is seen as a real challenge to the global PC industry's long-term prosperity, the institute claimed. The inexpensive machine market can change all that and is going to be in its mature period by 2008. The global market is expected to generate demand for 680 million units at over US$100 billion in value as of 2010, the institute forecast.
In fact, whenever the three projects mass-produce their low-cost computers, the biggest winners are still those Taiwan-based enterprises that are able to produce quality products with competitive prices. In terms of Eee PC, the battery was made by Celxpert Energy Corp., the keyboard chip design was handled by Ene Technology Inc., and the components were manufactured by Walsin Technology Corp. and Honey Hope Honesty Enterprise Co. Ltd. Similarly, in terms of the OLPC, Chi Mei Optoelectronics Corp. produced the panel, Shin Zu Shing Co. Ltd. made components, and Simplo Technology Co. Ltd. and Global Mixed-mode Technology Inc. were in charge of the battery and power supply.
Asustek President Jonathan Tsang said that his company supply planners raised their shipment target of the new laptop from an original 3.8 million to 5 million units next year, following extremely positive feedback on the machine from different sectors. Although the launch was delayed this year, Tsang was optimistic that a sales target of 200,000 units by the end of this year would be reached.
Write to Allen Hsu at allenhsu@mail.gio.gov.tw