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Is It the End of the Desktop PC?
Kelvin Soh - Reuters
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Taipei - The age of the desktop PC
appears to be over as its more portable cousin, the laptop, surges ahead
with consumers clamoring for light-weight computers in funky designs for
use at home, in cafes and on the train to work.
Not a single desktop model figured on online shopping portal
Amazon.com's top 10 selling PC and hardware list the weekend before
Christmas, while seven laptop models made the list.
It was yet another sign that the former dominance of desktop PCs is
fading as wireless advances and lower prices make laptops the preferred
option for millions of PC users around the world.
"On both price and performance, laptops are so competitive now it's
surprising they weren't able to catch up with desktops even earlier,"
said iSuppli analyst Peter Lin.
"The ability to surf the Internet wirelessly at public places, the need
to be able to take your office out with you when you travel, and an
increasing range of notebook computers have all led to lower desktop
sales."
Laptops posted a milestone in the third quarter of 2008, passing desktop
PC sales for the first time, according to research group iSuppli.
With an entry level price of $300 for some basic models, laptops should
bolster their position in 2009. They are forecast to take up about 55
percent of all computer shipments, according to data tracking firm IDC.
Many companies eagerly awaiting the era of the laptop are in Taiwan,
maker of about 80 percent of the world's laptop PCs. They include the
world's top two contract manufacturers, Quanta and Compal Electronics,
and two of the most aggressive laptop brands, Acer and Asustek.
While those firms have seen their market share rise, the world's top two
PC makers overall, Hewlett-Packard and Dell, have seen their share
shrink.
Other companies that produce parts such as motherboards for bulky
desktop PCs are already switching production to parts for other
electronic gadgets such as iPhones.
While laptops used to cost more than double that of a desktop with
equivalent processing power, advances in technology and economies of
scale have dragged prices down so much that little price differentiation
exists today for most consumers looking for a daily use PC, analysts
say.
"It's just evolutionary I suppose," said Gartner analyst Tracy Tsai.
"Things have reached a point where the price difference is no longer as
pronounced as before for many consumers, and the average person is more
likely to choose the option that offers him portability over the one
that doesn't."
SPECIALISATION
To keep their growth coming, Acer, Asustek and others vying for laptop
dominance are increasingly looking to segmentation, taking aim at the
wide range of computer buyers.
The runaway success of low-cost mini notebooks, initially derided by
many industry watchers but now one of the fastest growing categories,
could foreshadow a coming boom in products offering a wide range of
prices and functions.
"There is incredible choice in the notebook space now," said IDC analyst
Richard Shim. "You can get notebooks at every inch size from 5-inch to
20-inch."
Alex Gruzen, Dell's manager for consumer products, agreed that the days
when his company could offer laptops "in the same shades of grey" are
coming to an end.
Segmentation comes in both form and substance. In the former, Asustek
offers a bamboo-cased laptop for the environmentally conscious. HP has
tied up with designer Vivenne Tam to release the "world's first digital
clutch," a notebook designed to look like a woman's handbag.
On the more technical front, companies are offering an ever wider range
of specialized laptops in varying sizes, processing speeds, wireless
capabilities and prices. Battery life is also coming into play, with HP
recently announcing that one of its notebooks had broken the 24-hour
barrier.
Faster boot-up times and features such as touch-screens are also being
touted as companies try to convert former desktop users and build new
markets.
WHAT'S LEFT FOR DESKTOPS?
As portability becomes the norm, some are asking if there's any room
left for desktops in the brave new era of laptops.
Salesmen at Taipei's Kuanghwa computer market, one of the city's top PC
hang-outs, said hardcore computer game addicts may be one of the few
groups to keep buying desktops that offer greater processing power for
memory-intensive applications.
"Hardly anyone buys desktops anymore," said Elton Tsai, gesturing toward
the solitary HP desktop sitting in his shop amid rows of laptops.
"Anyone who is enough of a geek to want real processing power can
probably assemble his own computer, saving himself at least a few
thousand Taiwan dollars in the process," Tsai said.
But not everyone believes the desktop, which was first introduced in the
1970s, will soon be relegated to the junkyard of history. After all,
desktops can still offer substantial savings, especially for those who
are handy with a screwdriver.
"How can a laptop compete with a desktop on price?," asked Gartner
analyst Lillian Tay.
"Especially in the emerging markets where price is a consideration,
laptops simply cannot compete on price with a group of people who slap a
motherboard, a hard drive and a few chips together to get a desktop,"
she said.
(Additional reporting by Gabriel Madway in San Francisco, Editing by
Doug Young and Megan Goldin)
Top Ten Facts about Mexico Real Estate
Puerto Vallarta - Mexico Alive, a Puerto
Vallarta-based real estate development company, has been hosting
educational real estate seminars in various cities throughout Mexico for
more than a year. These events are called Discovery Weekends and average
about 40 attendees and $3.5 million in sales per event.
During the four-day, three-night events Mexico Alive representatives and
third-party sources educate attendees about the vast investment,
recreational and retirement opportunities awaiting real estate buyers in
Mexico, discussing topics such as lending, insurance, local culture,
health care, property value and appreciation.
Mexico Alive has found that Discovery Weekend attendees consistently ask
the same questions, most of which are fueled by the current housing and
economic crisis plaguing the U.S. In an effort to educate more people
about the facts surrounding Mexican real estate purchases, Mexico Alive
has decided to share the "ten things people don't know about Mexico real
estate" — and didn’t think to ask until the recent housing and financial
crisis.
1. Property in Mexico can be purchased with a self-directed IRA
(Individual Retirement Account) with no penalty, because buying foreign
real estate is the same as buying a stock or bond. The only catch is the
property must be treated as an investment.
2. Property values in some Mexican markets have doubled in the last five
years—and continue to appreciate. Even markets experiencing a slower
appreciation are still steadily rising. For example, properties in
Mazatlan, Mexico, have appreciated an average of ten percent per year
for the past ten years.
3. Of the 4.1 million Americans who reside in other countries,
approximately one million reside in Mexico.
4. Some of the larger groups of Americans and Canadians can be found in
Mazatlan, San Miguel de Allende, Puerto Vallarta, Guadalajara-Lake
Chapala and Los Cabos.
5. The top ten fly-in destinations in Mexico are: La Paz, Mazatlan,
Manzanillo, Ixtapa-Zihuatanejo, Cancun-Riviera Maya, Acapulco, Mexico
City, Los Cabos and Puerto Vallarta.
6. Banking institutions like Wachovia (NYSE: WB) and Deutsche Bank
(NYSE: DB) offer fixed-rate mortgages for properties in Mexico.
7. Mexican property can now be insured by US-based title companies, such
as Stewart Title (NYSE: STC) and First American (NYSE: FAF). The cost
for title insurance is estimated at about $5 per $1,000.
8. Non-nationals can now securely own Mexican real estate on or near a
coastline or border with another country. The property is purchased
through a bank trust (fideicomiso) or a Mexican corporation for foreign
purchasers.
9. Properties in Mexico can be purchased with a reverse mortgage.
10. For a $140,000 investment, a buyer can own a view lot with a 900
square-foot home, a 1,200 square-foot patio and all household
necessities (i.e. furniture, kitchen fixtures, etc.)
Mexico Alive’s Discovery Weekend events are offered in various cities
throughout Mexico, including Puerto Vallarta and Mazatlan. In Mazatlan,
the Discovery Weekends are hosted by the El Cid Resort and are
all-inclusive affairs, featuring a tour of the historic city, visits to
a variety of properties, sunset cruise, authentic Mexican fiesta and all
food and beverages. The event costs $185 per individual or $250 per
couple. Mexico Alive plans to expand its unique, educational concept of
Discovery Weekends to a dozen Mexican destinations.
Visit
GetIntoMexico.com for a free information kit that’s packed with
facts about Mexico’s real estate opportunities and its cost of living,
or visit
MexicoAlive.com. Better yet, attend one of the upcoming Discovery
Weekend events in Mazatlan for a full educational experience. Upcoming
Mazatlan Discovery Weekend dates: January 29-31. Call 866-978-5427 for
details.
Eric Nice Plays every Thursday at Mateja's
