White-books a way behind

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ASUS is one of the more recently players in Australia’s notebook market, having entered in the past few years along with other multi-nationals such as Samsung, BenQ and LG. Service and support is the key to the notebook market, Chen says.

"The notebook market is a big logistics war, you need a very formal approach to win market share," he says.

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"Each notebook, branded or not, uses different spare parts, so the spare parts and service costs are much higher than for a desktop PC. White-book makers try to deliver very good service but the cost is very high which means, in the end, it is very hard for them to make a profit. I believe most of them only sell to a specific chain or tender project, based on local relationships, instead of selling to widespread end users of dealer pools."

In a growing notebook market, Chen says new entrants such as ASUS have not stolen market share from the white-book builders as the prohibitive costs of service and support are holding them back.

"White-book still has a niche to survive in, such as built-to-order, but most of the white-book makers can only offer a return to base service and only keep a very limited spare parts," Chen says."They still have a market, but can not be as prosperous as the white-box market."
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