Taiwan-based notebook vendors such as Acer, Asustek Computer, Gigabyte Technology and Micro-Star International (MSI) have all recently dropped their ultra-thin notebook prices to compete for market share as well as clear their inventories.
Acer's 11.6-inch Intel Celeron 723-based entry-level ultra-thin notebook has already dropped to as low as NT$16,800 (US$528), a price lower than Hewlett-Packard (HP) and Asustek's 10-inch netbooks.
To counter the move, Asustek has dropped all its ultra-thin models by an average of NT$2,000, while Gigabyte's high-end Intel SU7300-based ultra-thin model has fallen to NT$21,000.
With ASPs of mid-range and entry-level ultra-thin notebooks down to less than NT$23,000, netbook demand will be directly impacted, sources from notebook players noted.
In addition to ultra-thin notebooks, previous-generation traditional notebooks have also recently seen prices drop by an average of NT$2,000.
As Intel has realigned its notebook platforms for 2010, most of the vendors have already readjusted their notebook lineups — netbook will be positioned at below NT$20,000, and ultra-thin notebooks at above NT$25,000, while the area between the two segments will be used for entry-level traditional notebooks including previous-generation models mainly targeting consumers looking for a high price/performance ratio.
Vendors will push the strong performance of mid-range and high-end traditional notebooks to separate them from ultra-thin notebooks, the sources added.
With 10-inch smartbooks looking to have an ASP of less than NT$7,000, the devices will have a chance to earn some share of the notebook market, the sources noted.
Article translated by Joseph Tsai
