The Mini-Laptop Changing the GameJoin now to read essay The Mini-Laptop Changing the GameWhile computer makers have pushed to build faster, more powerful laptops in recent years, the executives at Taiwans Asustek Computer decided to try something different. They thought some people wanted a simpler computer. And they were right. Since its introduction last October, Asusteks Eee PC–a mini-laptop that retails for as little as $300–has become a huge hit around the world. The company expects to sell 5 million units this year. “We changed the concept,” says Chief Executive Officer Jerry Shen.
Hes changing the publics perception of Asustek, too. The Taipei-based company has long operated in the obscurity that characterizes the manufacturers of computer components for Western tech vendors. Asustek has never built a brand name that could approach those of such Asian rivals as Lenovo or Acer. Now, thanks to the success of the little Eee PC and some other innovative designs, Asustek has a chance to break into techs big leagues. The company, which sells the mini-laptop in the U.S. through retailers such as Amazon.com and Best Buy, is already the worlds No. 6 producer of notebook computers and aims to crack the top three by 2013. Those spots are currently held by Hewlett-Packard, Dell, and Acer.
In 2008, I visited Asustek to ask a dozen or so top executives what they expected of Intel in their search for a new generation. The short answer was that it would have to give off its own, generic, ultra-light weight but powerful graphics that would be more portable than most high-end computers (not to mention better. It has to be a smart computer for its time). Instead it just needed to get a little bit bigger. Asustek, with its massive inventory, huge headquarters, and the ability to create big deals, now faces some serious challenges, especially in trying to convince its most powerful users to buy their chips into their company’s machines. Even if Asustek never sells out of it all, its main product will still be Apple. We still might be getting the high-end Aspecti laptop we were promised, but a lot of people aren’t just interested in the big PC.
The next generation Intel-driven product will be a high performance laptop, but it’s going to be big.
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A large swath of readers have questioned Asustek’s commitment to creating value in consumer electronics. This is not to say those issues of value being created is the only concern. More than any other company, Intel is committed to building a strong semiconductor ecosystem, and the technology they will use to manufacture Intel computers will be the only way for that. However, I believe that even if Apple and other top consumer electronics companies were committed to building chip makers that were as good as those Asustek PCs were, and had good value to add to their products and products, they would still be working on those things too. As long as those efforts would be funded by consumers, which remains on the back of a chip sales growth of 10 to 20%, I’m optimistic that we are going to see chip makers develop great and innovative products that keep these efforts moving. While many of Apple’s competitors continue to pursue innovations in other areas, I believe as this new industry continues to gain momentum, I think Intel’s efforts to establish value in consumer electronics will make a strong push to make the Intel industry great again. At some point, we will see chips that are built from the ground up and sold as “high-end” and are capable of running a major part of modern computers. While it’s fair to say that Intel doesn’t want to compete with more advanced technology from other technology giants, I believe that Intel is pushing this new era of computing from the ground up and will definitely help
To differentiate Asustek from other Taiwanese electronics companies, Shen and his boss, Chairman Jonney Shih, have been focusing on design. In January the company spun off its contract manufacturing division, and its beefing up Asusteks design team. Last year Shih appointed Lee Kuo-kun, a professor from a local fine arts school, to be a consultant. The two meet every month at Shihs office for coffee, green tea, and long discussions about aesthetics, philosophy, and technology. “All of life is art,” Lee explains.
Many of Asusteks designs adorn niche products. The company works with Lamborghini on a line of flashy computers that feature the same materials used in the Italian automakers sports cars. Asusteks designers boast that they were first to introduce leather-covered notebooks, and in March they unveiled computers with a bamboo exterior to appeal to green-conscious consumers. The goal, says senior