Tech Hardware Supply Chain - Gazhoo

Bhavin Shah
(852) 2800-8538
bhavin.a.shah@jpmorgan.com
12
Asia Pacific Equity Research
20 April 2009
Netbooks: Ultra-low-cost notebooks
There are two target segments for such a product. The first segment is a developed
market buyer looking for a light-weight and cheap second PC. The second segment is
focused on pushing these small form factor notebooks as the first PC in an emerging
market household. We believe small form factor, low weight, and attractive design
should drive netbook adoption as a second notebook in developed markets. Increase
in feature set, support for Microsoft XP, and larger keyboards with 8.9" and 10"
models help drive this trend. Also 12" netbooks have started coming to the market.
Over the past year, multiple PC OEMs have jumped into the netbook bandwagon
along with the early leader, ASUS due to a strong PC penetration pickup in emerging
markets, and we believe the competition in this space is getting intense.
Eee PCs: Easy, excellent and exciting
Asus launched new generation of Eee PCs—the Eee PC 901 and 1000 series. First
generations of Eee PCs were launched by ASUS (Taiwan) in October, 2007. (Please
refer to the previous edition of the Supply Chain Guide for more information on firstgeneration
Eee PCs and OLPCs)
Table 5: Eee PC configuration
Eee PC 901/ 904 HA/ 904 HD Eee PC 1000/ 1000HA/ 1002HD/ S101
Display 8.9” LED Backlit 10"/10.2"
Operating System Genuine Windows XP® Home GNU Linux
Intel CPU Atom 270/ Atom 270/ Celeron M 353 Atom 270/ Atom 270/ Celeron M 353/ Atom 270
HDD/SSD Storage SSD 12GB (XP),20GB (Linux)/ 160GB SSD 40GB/160GB HDD/ 160GB HDD/16GB(XP)
HDD/ 160GB HDD
& 32GB,64GB(Linux)
Online Eee Storage 20GB/10GB/10GB 60GB/10GB/10GB/30GB
Default Memory 1GB/1GB/1GB(XP) & 2GB(Linux) 1GB/1GB/1GB(XP) & 2GB(Linux)/1GB
Wireless 802.11b,g,n / 802.11b,g /802.11b,g 802.11b,g,n / 802.11b,g,n / 802.11b,g
/802.11b,g,n
Bluetooth YES/No/No YES/ YES/ YES/ YES
Webcam
Source: www.asus.com.
1.3M Pixel/1.3M Pixel/0.3M Pixel 1.3M Pixel/1.3M Pixel/ 1.3M Pixel/0.3M Pixel
Remodeling for Asus’ Eee PC
Currently, 10" models account for 70-80% of Asus’s Eee PC revenue and the
company plans to launch two new 10" models in 2Q09 that will be the mainstream of
its 10" models for 2H09. The ASP could stay stable in 1H09, but the blended ASP
might be higher due to transition to the 10" model.
HP Mini-Note
The new HP 2140 Mini-Note (announced at CES 2009) uses 10" LED backlit display
and 1.6GHz Atom processor. It has up to 2GB RAM, 80GB/160GB HDD, Wi-Fi and
Bluetooth. In 2008, HP launched its first netbooks with 8.9" models (2133),
primarily targeting the education market. The 2133 model had a high resolution
display, full-sized keyboard and much better industrial design, but the CPU
performance was an issue as it used VIA processors. Mini 1000 was an improvement
in features but lacked in design. In this way, we believe 2140 is a blend of the best of
both. HPQ substituted the Via CPU with Intel Atom in its new 2140 model.
Currently, HP’s newest Mini uses Intel’s Atom and offers higher storage capacity
HDD.