Mon, May 07, 2007 - Page 12 News List

Analysis: Analysts voice concerns on low-cost PC bandwagon

SURVIVAL OF THE FITTEST Only firms with economies of scale and excellent control of their supply chain will survive and take a controlling share of the new market

By Jason Tan  /  STAFF REPORTER

Despite the hype, Quanta's smaller rival, Compal Electronics Inc (仁寶電腦), has decided to pass on low-cost PCs.

"Low-cost notebook computers are not our focus," Compal spokesman Gary Lu (呂清雄) said.

The average price of portable computers has been on a downward trend over the past few years, and has now fallen to a comfortable level for most consumers, he said.

"Children in these countries are waiting to fill up their stomach, not play computers," he said.

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