Big bets on all-in-one desktops

New Straits Times, Malaysia
Jan. 2009

By Jason Tan

AFTER having successfully stimulated consumer demand in low-cost notebook computers, Taiwanese computer makers are now betting on the next killer device – the all-in-one (AIO) desktop.

Asustek is pinning hopes on the Eee Top to be another best-selling gadget, riding on the company’s earlier success with the Eee PC – a low-cost notebook introduced late 2007 – which has prompted rivals Dell, HP and Acer to follow suit.

Asustek, Acer, Micro-Star and BenQ are among companies set to introduce their first such offerings by this quarter.

These AIO PCs – one-piece desktops in which computer components are built into the monitor – will come with more affordable price tags, just like their low-cost laptop counterparts, and are expected to woo more budget users.

Asustek again took the lead by debuting a low-priced AIO desktop called the Eee Top last November. The 15.6-inch model, which boasts a price tag of only NT$18,900 (RM1,990), has a touch-screen, allowing Web navigation with a finger tip.

Other features include Windows XP Home operating system, USB ports, Gigabit LAN, wireless LAN, one gigabyte of random access memory, a 160GB hard drive, card reader and built-in camera.

AIOs are not new, with notable machines such as Apple’s iMacs and Hewlett-Packard’s TouchSmart already available in the market for some time. But their steep pricing of as high as US$2,000 has been a turnoff. Now, a combination of new features, including touch panels and improved industrial designs, and lower price points may help them win consumers back.

“A simple-to-use interface and affordability are keys to a wider user acceptance for AIOs,” said Eddie Wu, general manager of Microsoft Taiwan.

While traditional desktop growth has slowed, the introduction of more affordable models could lead a new wave of growth, he pointed out.

For Asustek, it is banking on the Eee Top to lead the way. Its chairman Jonney Shih is pinning hopes on the Eee Top to be another best-selling gadget, riding on the company’s earlier success with the Eee PC – a low-cost notebook introduced late 2007 – which has prompted rivals Dell, HP and Acer to follow suit.

“The Eee Top could create a new segment in the desktop market. Just look at how the Eee PCs are able to gain faster momentum than traditional laptops,” he said.

Smaller player Micro-Star plans to launch its new line of AIOs comprising 18.5-inch and 15.6-inch models this month. Prices are estimated between US$399 and US$499.

Computer giant Acer also is set to unveil its first model sometime this month. The 18-inch model will ditch touch-screen for sensor keyboard, and boast superb sound quality and impressive design. The price tag will be “appealing” to consumers, too, company sources said.

Its machine will carry the Gateway brand instead of Acer, a move for the Taiwanese company to promote the US brand it acquired in 2007, according to Acer’s president, Taiwan operations Scott Lin.

“A better way to sell AIO PCs is to launch models that incorporate the motherboard into the monitor, and prices should be kept lower than NT$20,000,” he said.

Taiwan businesses see lift from govt vouchers

Greater China News
Published December 8, 2008
Singapore Business Times

NT$3,600 for all citizens to boost consumer spending

By JASON TAN
IN TAIPEI

FEELING the pinch from the current economic slump, businesses across all sectors in Taiwan are expecting a boom from the government's plan to issue shopping vouchers worth NT$3,600 (S$163) to all Taiwanese in a bid to revitalise the economy.

These vouchers could be used for everyday needs including shopping, taxi rides, grocery purchases, or at KTV parlours. From technology outfits, food and beverages operators, department stores to transport firms, everyone is hoping the windfall bonus will stimulate spending at a time when people are tightening their belts.

'It is a slowdown that none of us have experienced in the past,' said Scott Lin, president of Acer's Taiwan operations. 'Businesses are hit by and large.'

The Taiwan PC giant is finalising plans on how to draw consumers to spend their vouchers on its products. Possible promotions include combining two vouchers to buy an LCD monitor or four vouchers for a popular Aspire One mini-laptop, and enjoy a few hundred dollars' discount.

'Everyone is eyeing a slice of the multi-billion dollar pie of the voucher scheme and we won't be absent,' said Mr Lin.

Transport operators, including the bullet train and couch companies, are also mulling special rates and packages for commuters who use the vouchers.

Bee Cheng Hiang, Singapore's barbecued meat brand, is not missing out. It expects the voucher scheme to add to its business momentum, especially since they will be handed out in mid-January, in time for the Chinese New Year.

Purchasing barbecued meat products as gifts during the festival is common here and thus the slowdown will cast minimal impact, a company executive told BT.

Bucking the cautious investment trend, Bee Cheng Hiang is set to open at least five more outlets in Taiwan next year, up from the current 26, she added.

In a bid to boost sagging consumer spending, Taiwan announced a plan to offer NT$3,600 worth shopping vouchers to the population of 23 million, including newborns and naturalised foreign spouses. They must be used by the end of next September.

The scheme - which will cost the government NT$82.9 billion - is intended to boost Taiwan's GDP next year by 0.64 percentage points. Japan had adopted a similar move when it issued shopping vouchers to children and low-income senior citizens in 1999 as part of an economic recovery plan.

Taiwan's economy is expected to follow Japan, Singapore and Hong Kong into a recession this quarter, after shrinking in the three months through September.

Government statistics released on Nov 24 showed that the island's export orders fell for the first time in six years in October, as foreign customers cut purchases of electronic chips, laptops and phones from Taiwan.

In October, the unemployment rate rose for the fourth straight month to a five-year high of 4.37 per cent, with a total of 476,000 people losing their jobs as companies cut costs to survive the financial tsunami.

S'pore firms eye Taiwan tourists amid slump

Published November 5, 2008
Singapore Business Times

Players tie up with Taiwanese agencies to push travel deals

By JASON TAN
IN TAIPEI


WHILE Taiwanese consumers started to cut down travel expenses in view of the weak economic sentiment, it may not be all bad news to some.

Marketing campaigns launched by Singapore Tourism Board (STB) here have managed to catch the attention of local consumers and drew them to the city-state.

One such case is the Formula One race held in late September, which lured big spenders to Singapore to enjoy the first-time night street race, according to Mei Yeh, an assistant manager with STB in Taipei.

'The F1 helped boost Singapore's fame here,' said Ms Yeh, adding that a number of travel agencies unveiled packages catering to the die-hard fans, with some well-heeled travellers spending as much as NT$10,000 (S$4,450) for the trip.

It may not be a good timing to promote holiday trips now, but STB took the chance at the four-day Taipei International Travel Fair - Asia's largest travel exhibition which ended recently - to promote the 'Uniquely Singapore' experience.

It tied up with five local agencies to push packages for travellers shopping for bargain deals. STB's selling points for November and December are 'A Sweet Christmas in Singapore', 'ZoukOut 2008' and 'Marina Bay Singapore Countdown 2009'.

In addition to STB, Singapore Airlines was also trying to reach out to Taiwanese travellers with its A380 packages at the travel exhibition.

'Travellers here are aware of A380 products and the general feedback is good,' Ms Sharon Wu, a manager with the airlines in Taipei, told BT.

While Singapore firms are upbeat despite the travel slump in Taiwan, local firms feel tougher days lie ahead.

'People nowadays don't have the mood to go for holidays,' said Miki Lai, a manager at Star Travel Service - one of the two largest online travel sites in Taiwan. Even short-haul flights to South-east Asia are affected and around 10 travel agencies have recently folded, she said.

That's why Taiwanese are now betting on the cash-rich mainland tourists to revive the sluggish tourism sector.

Statistics from Cross-Strait Tourism Association show that the number of China's outbound tourists grew 18.6 per cent to 40.9 million last year, and would increase to 50 million in 2010. Total figure could reach 100 million by 2020, making it the world's fourth-largest outbound tourist country.

Taiwan, indeed, hopes to grab a share of the pie when both sides across the strait launched direct charter flights on weekends in July. The island has ceased direct flights to the mainland after 1949.

However, only some 1,000 mainlanders visited Taipei a week after the charter flights began, a far cry from the 3,000 daily as earlier expected.

'The doors to Taiwan were just flung open. Mainland Chinese are still unfamiliar with Taiwan's travel products,' said Zhu Shanzhong, secretary-general of China's Cross-Strait Tourism Association, who was at the fair to promote China's attractions.

Further measures have to be taken to lure Chinese visitors, he said, which include expanding direct daily flights, easing restrictions on size of travel groups, and allowing more 'free and easy time' during the trip.

Taiwan's authorities have estimated that Chinese visitors could boost the economy by injecting NT$60 billion a year.

Asustek seeks to secure netbook position

Jason Tan In Taipei
27 October 2008
Business Times Singapore

The Eee PCs' success has attracted a horde of rivals including Acer, Dell

IN April, barely six months into the launch of its first Eee PC netbooks, Taiwan's Asustek Computer chief executive Jerry Shen started thinking about how to churn out another new model that might set the company's offerings apart from competitors.

When it officially unveiled its third-generation Eee PC, the S101, in Taipei this month, the mini notebook only took Asustek six months from conceptualisation, design, manufacturing to hitting the stores.

This is an improvement from the 10 months it took to produce the first-generation Eee PCs.

'Innovation speed is the key,' Mr Shen said on how Asustek intended to distance itself from rivals.

Indeed, when Asustek took the throne by introducing the world's first netbooks in October last year, it did not expect these small laptops - coming with screens no larger than 10 inches and offering basic computer features - would have taken the market by storm.

The first-generation Eee PC was equipped with a seven-inch screen, simple user navigation and most importantly - an attractive price tag of below US$300, a steep decline from a mainstream laptop selling at above US$1,000.

Four million Eee PCs have since been sold during the first year and Asustek has made available over 10 models to date.

Asustek , which also makes motherboards, aims to ship over 20 million notebooks - both mainstream notebooks and netbooks - next year, up from this year's total of 11.3 million, chairman Jonney Shih told reporters after making an appearance at the Intel Developer Forum here last week to show support for Intel's Atom processors, which are used in netbooks.

The success of Eee PCs has attracted a horde of rivals including Hewlett-Packard, Lenovo, Dell and Acer, into the fast-expanding market.

Another new player is Taiwan's BenQ, which is hoping to gain share in the market by debuting a 10-inch model in November, starting first in the Greater China region.

'The market is promising. While growth of desktops and notebooks is steady, netbook expansion could be exponential,' said Richard Hsu, BenQ associate vice-president of computing product management centre.

BenQ, whose losses forced it into bankruptcy after its takeover of Siemens' mobile phone unit failed, is pinning its hopes on a comeback with new launches of mobile devices, including these smaller PCs.

However, while the netbook outlook is promising, concerns are rising that they could eat into the share of high-end smartphones and impact makers' profitability, said Ellen Tseng, an analyst with Nomura Taiwan, in a report on Oct 3.

Another challenge for Asustek is that local rival Acer is fast catching up.

Following the launch of its first netbook 'Aspire One' in July, Acer, the world's third-largest PC maker, is set to ship five million units by December.

Sales of Aspire One notebooks were bullish despite the current credit crunch, with one million units sold in September alone, according to Scott Lin, a vice-president at Acer.

'Acer's Aspire One is gaining momentum faster than Asustek's Eee PCs owing to Acer's better user interface,' Nomura's Ms Tseng noted.

Asustek is not letting its guard down.

'The barrier was high when we first initiated the first Eee PC, but now everyone is coming into the scene, the battlefield is getting tougher,' Mr Shen said.

With the launch of the S101 at a price tag of US$699, it is shattering the impression that netbooks should be cheap and overlook the elements of design and functionality.

The model is said to 'meld fashion, aesthetics and technology', and is being compared by some to Apple's MacBook Air with its light weight of 1kg, thickness of 1.8cm and 10.2- inch screen.

It comes complete with Windows XP Home, 1GB RAM, 16GB of solid-state- drive storage, three USB ports, Wi-Fi, Bluetooth and a replaceable lithium-polymer battery that runs around five hours.

Future Eee PCs will no longer be only 'cheap' and 'simple functioning', Mr Shen said, as they could be priced anywhere from US$200 to over US$1,000 depending on functionality, and more models catering to a range of low to high- end needs will be in the pipeline next year.

Non-casino elements debut in Macau's Cotai

Jason Tan in Macau

1 September 2008
Business Times Singapore

Las Vegas Sands cutting reliance on gaming with entertainment, retail spots

WITH the debut of its first resident show and a luxury mall, Las Vegas Sands is in full gear to spice up the Cotai Strip scene here by adding entertainment and retail elements, in a bid to cut dependence on its gaming-driven revenues.
Last week, the Venetian Macao - the world's biggest mega casino-resort and the first property on the Cotai Strip - formally raised the curtain on the much-touted Zaia, a 90-minute resident production from Cirque du Soleil.
The same day, its adjacent neighbour, Four Seasons Hotel Macao, also opened its doors by boasting the first luxury mall in the former Portuguese enclave, adding hype to Cotai's development.
'We are changing Macau from a gaming-centred to a multi-faceted destination,' William Weidner, president and chief operating officer of Las Vegas Sands, told reporters.
In 2004, the US firm launched an ambitious project by reclaiming land in between Taipa and Coloane islands - hence the name 'Cotai', aiming to recreate the success of Las Vegas Strip here.
The project, which will welcome at least 10 more hotels by 2010, runs at a total cost of US$13.5 billion.
It is expected that in 2010, non-gaming activities will account for 45 per cent of all Cotai Strip's profits, up from this year's estimation of 40 per cent, according to Mr Weidner.
When Cotai takes shape, gaming floor area will take up only 3 per cent of the total floor space, leaving the bulk to non-gaming businesses, he said.
Zaia, for one, will kick off a series of seven Las Vegas-style resident performances along the Cotai Strip. The Canadian circus troupe Cirque du Soleil has poured over US$150 million into the show, which debuted at a custom-built 1,800-seat theatre inside the Venetian Macao last Thursday.
'It is an untried model in Macau and Venetian is the first doing it,' David Green, a Macau-based gaming practice director with PricewaterhouseCoopers, told BT.
Sands is trying to replicate the successful model in Las Vegas, where 60 per cent of revenues are generated from non-gaming activities - such as retail and restaurants, but is not sure if it will take off in Macau, Mr Green said.
Over at Four Seasons, its luxury mall - The Shoppes at Four Seasons, is eyeing China's big spenders who are willing to splurge on luxury goods. The 211,000 square foot mall gathers 180 world renowned brands, such as Gucci, Hermes, Fendi and Louis Vuitton, under one roof, of which 60 are new to Macau. 'Now, there will be more non-casino reasons for people to come here and spend,' said Mr Weidner.


Accompanying story: Macau casino boom faces threats

AT NIGHT, the Cotai Strip is glowing with lights, bustling with cranes and construction workers.
Launched on August 28 last year, the Venetian Macau is the first property rising in the reclaimed land between two smaller islands of Macau. Exactly the same day a year later, Four Seasons Hotel opens its doors to visitors.
By next year, Traders, Sheraton and Shangri-La will welcome guests. By 2010, other big hoteliers to move into the strip will include Hilton, Intercontinental and Conrad.
When the Cotai Strip takes full shape, what it will have on offer will stretch the imagination: 20,000 hotel rooms, over 3 million square feet of retail space, and 2.5 million square feet of meeting and convention facilities.
Sheldon Adelson, chairman of Las Vegas Sands, told reporters last week: 'Upon completion, the Cotai Strip will be the world's top convention and exhibition hub. Even the combined space offered in Shanghai and Beijing is of no competition.'
While Macau has already surpassed the Las Vegas Strip as the world's top gambling centre in terms of gaming revenues, its future prospect does face looming threats. For one, China is trying to cool the Macau boom with restriction on mainlanders' visits.
Beijing is reported to be planning to further restrict individual mainlanders from visiting the gaming city to once every six months instead of every two months, starting from October. Since July 1, mainlanders from selected cities travelling under Beijing's individual visitation scheme - who represent over 50 per cent of all tourists to Macau - have been permitted to visit the enclave once every two months.
That itself was a shift from a once-a-month rule enforced on June 1, and before that, a twice-a-month policy was in effect.
'It is a variable impossible for casino operators and Macau government to control,' said David Green, gaming practice director with PricewaterhouseCoopers.
Meanwhile, the capital markets have lost their previously voracious appetite for casino stocks. This is the result of the credit squeeze and escalating fuel costs, which indirectly impact destination casinos; there are also concerns about earning outlooks, especially those stocks with exposure to the Macau market. Sands reported a second-quarter loss of US$8.8 million, attributed to the increased interest costs of loans underpinning developments in Macau, Las Vegas and Singapore; as well as higher running costs of the Venetian Macao and the Palazzo in Las Vegas.
'Casino firms are typically highly geared, and susceptible to a combination of declining earnings and rising costs of capital,' Mr Green said.

More Taiwan firms join in solar chase

Greater China News
Published October 20, 2008
Business Times Singapore

A recent entrant is Ritek, which formed a joint venture with a Dutch firm

By JASON TAN
IN TAIPEI

YES, solar power may still seem something far-fetched to most, but its promising outlook has lured a horde of Taiwanese companies to secure a foothold in the industry.

The island's tech firms, well-known for their strong contract manufacturing capability, have joined in the solar fray to produce everything from materials, modules to cells and panels.

A recent entrant is Ritek Corporation, the world's third-largest Blu-ray DVD maker. Last Tuesday, it announced a joint venture with Netherlands-based Scheuten Solar to produce thin-film solar cells, which are used in solar panels on roofs. The initial capital investment is NT$600 million (S$27.2 million), with each taking 50 per cent stake.

'There is untapped opportunity in solar power,' said Ritek CEO Cordon Yeh. 'With soaring petrol prices and the current credit crunch, prospect of solar industry is shining brightly.'

Industry veterans predict the photovoltaic market worldwide is set to grow exponentially over the next decade. The growth will be fuelled by governments' push for utilities to use low-polluting energy sources and their subsidies in the purchase of solar power systems.

Ritek would utilise its thin-film coating expertise in optical disc production to churn out copper indium gallium selenide (CIGS)-based solar cells. This would make the company the first in Taiwan to use such material, compared to other rivals mainly using silicon, said Mr Yeh.

The company was betting on the faster uptake of CIGS cells as their costs would drop to around US$1 next year, compared to the more expensive amorphous silicon cells, which were expected to drop to the similar price point only in 2011, he added.

The company said the new venture would churn out 30MW output by this year's end, with production capability to rise to 120MW in 2010.

With Ritek entering the scene, there are now more than 40 Taiwanese companies taking part in the solar chase. Of them, at least half are making solar cells, including big names Motech Industries and E-ton Solar Tech, according to Arthur Hsu, an analyst with Topology Research Institute in Taipei.

'Taiwan's firms have the technology know-how in the production of panels and optical discs, among others. This will shorten their learning curve in solar market and enable them to jump into mass production soonest,' he told BT.

Taiwan's 'god of mgt' dies at age 91

Published October 17, 2008
Business Times Singapore

Formosa Plastics' Wang Yung-ching a legendary figure
By JASON TAN
IN TAIPEI

FORMOSA Plastics Group founder Wang Yung-ching, dubbed 'Taiwan's god of management', has died, aged 91.

A legendary figure in Taiwan business and a household name here, Mr Wang died in his sleep on Wednesday morning while on a business trip to the US, Formosa Plastics Group said.

'His death is the end of a role model,' said Horng Shun-ching, a business administration professor at National Chengchi University in Taipei. 'He was a typical older-generation Taiwanese entrepreneur, who was hardworking, prudent and down to earth - values that younger businessmen now lack.'

Mr Wang's rags-to-riches background is an inspiring tale for most Taiwanese.

Born to a farming family, he dropped out of school at 15 and opened a rice shop a year later with NT$200 (S$9) of capital borrowed from his father.

He went on to found Formosa Plastics Corporation in 1954. The business empire gradually expanded to include oil refining, hospitals, bio-technology to cars and semiconductors.

As Taiwan's biggest industrial conglomerate, Formosa Plastics Group's subsidiaries include Formosa Plastics Corp, the world's second-largest maker of polyvinyl chloride, and Nan Ya Plastics Corp, the biggest processor of plastics used in pipes and imitation leather. Another unit, Formosa Petrochemical Corp, is Taiwan's only publicly traded oil refiner.

Last year, the group was Taiwan's most profitable enterprise group with net income of NT$219 billion. Total revenue surged 21.7 per cent to NT$2 trillion.

Despite his success and wealth, which earned him a place in the Forbes billionaire list alongside Terry Gou, another Taiwan big shot who is chairman of Hon Hai Precision Industry, Mr Wang led a frugal life.

'He was known for using the same towel for over 10 years and always wore the same few business suits,' Prof Horng said.

Mr Wang's frugality also applied to his businesses. He emphasised the importance of 'cost down', meaning that an enterprise can only be sustainable and boost efficiency when it has the lowest possible overheads.

Taiwan President Ma Ying-jeou and many entrepreneurs have expressed sadness at Mr Wang's passing.