Monday, November 12, 2007

Asustek to push desktop version Eee PC next year

Monica Chen, Taipei; Joseph Tsai, DIGITIMES [Friday 9 November 2007]

Asustek Computer is developing a desktop version Eee PC which it hopes to launch in 2008, according to Jonathan Tseng, president of marketing at Asustek. Tseng noted that the PC will not include a display, but further specifications and pricing are still under evaluation.

Some component makers pointed out that no matter which version of the Eee PC Asustek launches, they will benefit. However, they noted that since Asustek is currently not seeing outstanding performance in the desktop PC market, the Eee PC's transition to a desktop version should prove difficult for the company, although the benefits of the plan still outweigh the drawbacks.

On the other hand, some PC vendors remarked that with the growing trend of notebooks replacing desktops, desktop PCs will eventually head toward multi-core CPUs and the mid-range and high-end markets. If Asustek launches a low-price desktop it will not have any positive selling points, other than the Eee PC brand.

Regarding recent comments from Acer claiming that sales momentum for the Eee PC has already begun to slow and that return rates for the product are above industry averages, Tseng pointed out that the Eee PC's return and malfunction rates are both below 1%, according to internal data, while weekly shipments are around 5,800 units, and total worldwide shipments have already reached 100,000 units. With the launch of a Windows XP version Eee PC in December, the goal of 300,000 units is expected to be achieved by the end of this year, added Tseng.

However, with the ongoing components shortage, it will not be easy for Asustek to achieve its Eee PC shipments goal, according to market sources, who added that they expect to see a great leap in shipments after the second generation Eee PC launches in April next year, by which time the shortages should have already been solved.

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