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Asustek hypes new low-cost AIO computer

Asustek Computer Inc (Asus, µØºÓ¹q¸£), pioneer of Internet-enabled mini-laptops called netbooks, believes the next wave of low-cost All-In-One (AIO) personal computers will rejuvenate the desktop market and see the same success as its netbooks.

¡§The preliminary sales target is 5 million units of [various models of] Asus AIOs in two years time,¡¨ Asustek chairman Jonney Shih (¬I±R´Å) said during a surprise appearance at a company product launch on Thursday.

Shih said he believed that in three year¡¦s time AIOs will take up 30 percent to 40 percent of the global desktop market and be a driving force behind reviving the declining desktop business.

Asustek chief executive officer Jerry Shen (¨H®¶¨Ó) said the company¡¦s AIO ¡X Eee Top, with a 15.6-inch display ¡X is already garnering interest in Taiwan, Hong Kong and the UK.

¡§Our first wave of shipments is estimated at 100,000 to 200,000 units,¡¨ Shen said at the launch.

Following the launch of the 15.6-inch Eee Top, Asustek plans to also introduce 20-inch and 22-inch versions.

The sales and marketing strategy for Eee Top will be similar to that of Eee PC, Shen said, adding that he expected Eee Top to reach Europe and the US before the holiday shopping season.

Similar in function and appearance to Apple Computer Inc¡¦s iMac and Hewlett-Packard Co¡¦s TouchSmart, Asustek¡¦s Eee Top retails at NT$18,900 (US$565.53).

The device is based on the technology behind Asustek¡¦ Eee PC mini laptop and features touch screen technology, a Windows XP Home operating system, USB ports, Gigabit LAN, WLAN, an integrated camera, a 160 Gigabyte (GB) hard drive, 1 GB of RAM and a card reader.

However, the processor is only an Intel Atom 270 chip. While energy-saving, it provides less power than the dual-core processors used in the other machines.

Eliminating most of the bells and whistles seen on iMac and TouchSmart, Eee Top positions itself as a bare-bone multimedia center for the family, allowing quick access to the Internet, music and photos, the company said.

Shen said he saw no market cannibalization in the company¡¦s desktop Eee model called Eee Box and its core motherboard business with the introduction of Eee Top devices.

Shen said the Eee Box was strategically priced at below NT$10,000 while its motherboard business was dominated by loyal clients. The three are aimed at different customer groups, he said.

Asustek said that so far, it was comfortable with its component supplies. While foreign currency exchange remains a challenge, it said it outsourced currency risk management to an outside financial institution.

Shen said the company was outsourcing manufacturing to Quanta Computer Inc (¼s¹F¹q¸£), which has extensive experience producing Sony and Apple¡¦s AIO models, dispelling rumors that Asustek had contracted Hon Hai Precision Industry Co (ÂE®üºë±K) for Eee Top production.

Apple, HP, Dell Inc and recently Micro-Star International Co (MSI, ·L¬P¬ì§Þ) have all entered the AIO market, while Acer Inc (§»ùÖ) is planning to release its AIO ¡X called Gateway One ¡X early next year.

AIOs are particularly popular in the education field because of their small size.

That applies especially to the iMac and its strong penetration of the US primary and higher educational markets because the devices are space-saving.

ADDITIONAL REPORTING BY DPA
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