Mid-range options booming in notebooks

A Gartner study this quarter says notebook vendors with their eye on the main chance are adding yet more features and functionality while the prices just keep coming down.

All these factors up the ante on mid-range notebooks priced from $2000 to $3000. The mid-range just gets more and more attractive. That is attracting new vendors, creating more choices -- and hopefully, more opportunity -- for Australian resellers.

Taiwan-based BenQ is a relatively new entrant into the notebook game. Paul Schnell, senior product manager at BenQ, confirms that the mid-range notebook category is getting more important. "Our 14-inch screen model -- we are refurbishing that as a model called the S72," he says.

BenQ’s S52 model has a 13-inch screen and weighs just under two kilograms. That makes it quite light and portable but not as expensive as the true ultra-portables. Wireless, also, will "continue to feature heavily" in BenQ product in coming quarters, Schnell says.

LCD specialist BenQ wants to strengthen its notebook performance and presence overall. "We’re seeing growth every month but it’s starting off a very small base," Schnell says. "We’ve a lot more work to do."

BenQ, he says, is aiming for a top five spot this year. Mid-range is crucial to the goal because without a mid-range strategy, it is still too high a leap from entry level to top of the line. Vendors have to make upselling easy, "or customers have nothing to look up to", he says. "Mid-range is as important as entry level and top."

BenQ, he adds, is too small a player to make its mark on price alone. At entry level, making margin has become nearly impossible, as larger vendors have become "very aggressive" in their pricing.
"We’re achieving our expectations but obviously don’t have the world at our feet," Schnell says.

HP in particular is in BenQ’s sights.

HP did not respond to CRN’s invitation to discuss its products for this feature, but Schnell says the companies are ‘obviously’ in the same space with their mid-range laptops.

BenQ is promising agility and commitment to its channel, he adds, which he sees as critical in building volumes -- partly through rebates and the dealer loyalty program -- for the brand across its increasing portfolio. "Our strategy is going to be fairly similar for quite some time. Retail plays a big part in branding and promotional push for us," Schnell says.

"The channel is more of a balance because the customers are coming in and asking for [us].

"Our channel did a fantastic job for our LCDs. So you see people asking to look at other products [too]."

Schnell -- who until last year was with retail giant Harvey Norman -- says the most expensive mid-range laptops cost about $2999 now. "I’m expecting to see in June or August it will go to $1999. One major vendor will crack that and offer the dealer a margin to break that as a stunt," he predicts. "But I think it will bottom out at something like $499 for a PC, but that will be some time away."