Low-cost PCs hog limelight as slowdown looms

Smaller, low-cost PCs were at the top of the shopping list for technology
buyers gathering in Taipei this week for Computex the world's second largest
computer fair, as an economic slowdown in the United States forces consumers to
cut back on spending.

Shoppers are feeling the pinch from rocketing fuel costs and rising prices,
and in the United States the crisis has left lenders less willing to hand over
credit, leaving some consumers reluctant to buy new expe­nsive personal
computers and gadget heavy mobile phones.

Cheaper, low-cost PCs, such as Asustek Computer Inc's Eee com­puter, aimed at
emerging markets and buyers of additional computers, may keep growth on track
for many computer and component makers.

These PCs, many with longer battery lives and wireless connection features,
will share the stage with a line of eco-friendly computers with slimmer,
energy-efficient displays and solar power systems, designed to cut power
consumption as oil prices soar and consumers seek ways to reduce their
environmental impact.

"We don't have deep pockets now," said Kevin Chung, Manager, Jih Sun
Investment Consulting, Taiwan.

"We really have to watch closely on the buying interest because that is going
to be a signal on how the recovery's strength will be in the second half," he
added.

Low cost PCs, many with longer battery lives and wireless connection features, will share the stage with a line of eco-friendly computers with slimmer, energy-efficient displays and solar power systems, designed to cut power consumption

Asustek Computer, which makes Eee PC, will display new, wider-screen models
that allow users to do everything from storing video clips in shockproof flash
memory and surfing the web in coffee shops.

Acer Inc, will also test the water by introducing similar low-cost PCs as it
expand into fast-growing emerging markets, including China and India.

"We will launch a notebook different than the ones we've sold before and
targeted at a new consumer segment," an Acer spokeswoman said.

Next to Acer's booth, Intel Corp will be prom­oting its new processors, as
the US chip giant sees a big market for ultra low-cost PCs that can fit in one's
pocket and for the Netbook, a PC selling for about $250.

Baker Li