Major PC companies threatened by ultra low-cost notebooks

Alarmed by the overnight success achieved by the ultraportable laptop market, pioneered by small computer manufacturers such as Asus and Everex, big-name companies have expressed their concern about the small machines gobbling up most of the revenue in the PC market.

The low prices and apparent popularity of the new breed of ULPC computers, such as the Asus Eee PC, appears to threaten the market of PC makers who have built machines on the premise that the more powerful and expensive a machine is, the more attractive it is to the consumer。
"When I talk to PC vendors, the No. 1 question I get is, how do I compete with these notebooks when what we really want to do is sell PCs that cost a lot more money?" said J.P. Gownder of Forrester Research.

Some major companies decided to cope with the new trend, churning out their own low-cost laptops as well, such as Hewlett-Packard, the manufacturer behind the recently-released HP Mini-note. "Our competitors proved there is a pretty good market," said HP's notebook product manager Robert Baker.

Not everyone are too impressed about the market's new love for small, low-cost machines. Fujitsu, in particular, is wary about the relatively small profit margin the ULPCs offer. "It’s a product that essentially has no margin," said senior director of mobile product management Paul Moore.

Mobile computer enthusiasts will certainly face an interesting trend in motion. Will the introduction of ULPCs cause a major change in the market? Only time can tell。

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