Market Focus
The return of AIO PCs
In a comeback, all-in-one PCs are expected to reinvigorate the sliding desktop market
By KR Nambiar
Over the last couple of months, all PC vendors have launched their all-in-one (AIO) desktop models aimed at both consumers and businesses, thus marking the return of integrated PCs.
Reminiscing about the earlier avatar of AIOs, Dinesh Nair, GM, Sogo Computers, Bengaluru, says, “The earliest I can remember is the Compaq Presario AIOs launched in the 90s. Packard Bell was another vendor that sold AIO PCs. But because of the prohibitive pricing as compared to traditionally designed models, lack of upgrade choices and issues with servicing, AIOs failed to take off.”
This time around though, the AIO story is likely to enjoy a different fate.
Current tale
“The Indian market has matured significantly as compared to the early 1990s. Gone are the days when a PC was perceived as just a computing device by home users. Consumers now use it for their infotainment needs like TV, music, movies, photos, voice, and video as well. We at HP see AIO as a game changer in the PC-enabled lifestyle space,” says Ketan Patel, Country Manager, Consumer PCs, HP India.
So far, HP has been shipping the high-end HP TouchSmart AIOs which come in 22-inch and 25.5-inch sizes at an entry-level price of Rs 89,900.
HP is expected to roll out low-end models soon.
According to a recent report by Display Research, about 6 million AIO desktops will ship in 2009 and the sales will nearly double by 2010. It expects AIOs to be the fastest growing desktop category.
Many analysts believe that AIO PCs would help invigorate the desktop segment that has been witnessing a consistent fall in market share against notebooks.
IDC has even steeper projection. “Small businesses around the world are constantly looking to do more with less. We predict that by 2013 small form factor (SFF) desktops and AIOs will make up nearly 38 percent of the desktop shipments, globally” says Richard Shim, Research Manager for IDC's Personal Computing Program.
Lenovo is another PC-maker that is extremely bullish about the new segment. It recently launched the Lenovo A600 with integrated gaming control from Wii that let users play motion-sensing games.
“It’s all about reinventing consumer experience and the home desktop market itself. We are very bullish about AIOs. The initial response from the retail partners has also been excellent for the models we have launched,” says Amar Babu, MD, Lenovo India.
Acer introduced the AIO desktop under its Gateway brand in June and has been selling 100 units per month. “We launched the new model exclusively at Croma outlets. We are proactively educating consumers about the merits of AIO PCs. However considering it’s a new category, consumers will take time to evaluate and arrive at a purchase decision. There is no doubt that if the product positioning is right, we will start seeing large numbers in a quarter or so,” says S Rajendran, CMO, Acer India.
While HP, Acer, and Lenovo have introduced models that are primarily targeted at consumers, Dell has launched a model for SMBs.
Dell believes that the AIO can be an attractive proposition for saving office space. And this it says is based on an online survey it conducted recently among SMB customers in top 10 markets including the US, the UK, India and China.
“With cost of real estate spiraling northward, the respondents of our survey showed a clear preference for SFF PCs. The Vostro AIO offers 79 percent space saving compared to a traditional desktop,” said Sam Burd, Global Vice President, SMB, Dell.
Future prediction
AIOs, many industry pundits believe, may open up the desktop computing space for many non-PC players, especially the display vendors. Display-maker, Viewsonic has already forayed into the market with the launch of its VPC100 AIO (with an Atom processor, more like a nettop) priced at Rs 32,000. Viewsonic is looking at targeting both consumers and businesses with its AIO.
Many more display vendors are on the verge of rolling out AIO PCs, according to H Ramesh, Senior Manager, Ralco Synergy, a prominent importer for computer products. “We have been getting feelers from many Chinese and Taiwanese display vendors to ship AIOs to India. They are looking for importers and distributors for the Indian market,” adds Ramesh.
However not everyone is gung-ho about AIOs. “Consumers are inquiring about AIOs, but this is
normal. Every time a new category is launched enquiries are higher. But has it converted into sales? The answer is no and the main reason is the price.
The moment the customer learns about the price of the AIO they change their decision in favor of
notebooks as the prices are comparable,” says Sunny Ahmed, Manager, Digit Mart, a Bangalore-based retailer.
Acer’s Rajendran disagrees with Ahmed’s perception. “The Gateway model we are shipping has a premium of roughly 10 percent over the traditional desktop with the same configuration.” The company is considering launching the AIO PC under the Acer brand as well. |