Low-cost AIO PC - good or evil?

austin

Macquarie Research

PC revolution

 

Event
What if they got PC pricing wrong? Worse yet, what if they got consumer demand wrong? Well, we believe the global PC industry is about to undergo a revolutionary change as Asustek answers both of these questions with the launch of its Eee Monitor. This monitor is fully integrated with desktop functions and does not have a separate PC box, that is, it is an all-in-one (AIO) PC, just like Apple’s iMac (which retails at about US$1,199) or Sony’s VAIO JS1 (US$1,099). In comparison, the Eee Monitor could retail at below US$500. This product provides ‘enough’ functions to meet consumers’ preference for functionality over performance; hence, a much lower PC price. We believe the Eee Monitor is likely to trigger a rapid replacement of the traditional desktop PC due to its ultra-low price, features and space-saving advantage. This revolutionary design is likely to trigger other PC competitors to follow suit soon and we might see a fast drop in desktop box demand or falling component ASP. Our tech team shares its thoughts on the potential impact of this development on the PC industry.

Impact
PC brands – mixed. We view the impact of the low-cost AIO PC on DTs as more positive than negative vs the impact of netbooks. We believe stocks with high DT exposure (Dell &Lenovo) are likely to suffer the most.

DT box/casing makers – negative. Higher adoption of low-cost AIOs means faster drop in DT box demand. This risk could be offset if Hon Hai enters the segment.

Thermal module/fans – negative. It may accelerate the adoption of thermal modules while fan/heat sinks are phased out. Overall, ASPs may decline.
Storage – neutral to negative. HDD views are mixed, given the potential for less storage, with OSD makers a likely victim due to low/no OSD bundling.

PC peripherals – positive. We expect these names to benefit as we believe they will continue to be the mainstream input/output devices for AIO PCs.
Power supply – positive. Suppliers are likely to benefit from higher design requirements for AIO PC power adapters, offsetting their lower power ratings.
TFT-LCD panel makers – positive; monitor manufacturers – negative. Panels are needed for AIO PCs but monitor assemblers may lose business.
ICs – neutral to positive. Local replacement for cost-reduction and rebirth should be positive for MB-focused companies.
Memory – negative. DRAM demand could potentially slow. The AIO PC could also drastically reduce the average DRAM content per PC.

Outlook
Considering the pros and cons, we would stay away from DRAM, storage, mechanical component and monitor makers. PC brands with higher DT exposure (Dell and Lenovo) may also face ASP erosion while Asustek may enjoy firstmover advantage. TFT will likely be a long-term beneficiary but due to current credit crisis risk, we would stay away from them for now. On the surface, the lowcost
AIO may look negative for Hon Hai but this depends on how quickly it penetrates the market. While Hon Hai’s share price is seeing see great correction due to weak market sentiment, we maintain our positive view.

 

AIO(All In One)在此就是將螢幕跟電腦主機結合為一體，所以螢幕雖然看起來厚了一些，但是可以節省主機的空間。有點類似平板電腦的放大版，只是沒有觸控功能而已。

這個概念再衍生下去的話，房間裡擺這台，多放個機上盒(Setop Box)就能看電視，電腦與電視的距離就更近了(最好以後是沒有區別)，如果再整合一些網路設備在裡面，看電視時電腦不用開機，然而網路下載動作仍在進行，等到下載完成後就能直接播放下載的影片檔，網路百視達的概念就更有機會成形。

 

記得小時候有出一台電視，將遊戲機跟電視合而為一，Eee Monitor類似如此，而且能玩的概念其實不少，例如增加遊戲機的整合、藍光DVD、小型家庭劇院設備(KTV電視之類的)....之類的，蠻有意思的。

rexyliu

hi, dear all, I am studying the AIO with multi-touch panel, but it seems the software, application, especially killing application are not available on the market for supporting multitouch. Not to mension for kids and elder people. Meanwhile, it seems the AIO forecast and opinion varies by each analysis organization. I'd like to discuss more with you guys if you are interested in the topic. PS. LED TV is also my another subject.