Digitimes has an interesting article this morning titled Worldwide PC processor revenues in 3Q11 rise over 12% sequentially, says IDC. They mention how PC processor ASPs (Average Selling Prices) have increased 8 quarters in a row due to better integrated graphics that customers are willing to pay more for. This concept is not new to GIGABYTE because we have seen our product mix go from 80% entry-level motherboards in 2005 to where we are currently at around a mere 40-45% entry-level models. We think this trend towards higher-end desktop PCs is largely due to 2 reasons:
1. Smart phones, tablet PCs, netbooks and low cost notebook PCs are aggressively competing in the entry level segment where consumers need connectivity and basic computing functionality only. The traditional desktop PC with a 22 inch monitor, 2/4 core CPU, 8GB of memory and a 1TB+ hard drive (these are pretty much the entry level desktop PC specs in Taiwan now) has moved up the scale and is by comparison a powerful computer. In other words, people who buy a desktop PC are doing so because they need the performance or features of a desktop, not just because they want to send emails.
2. More people know how to DIY their PCs today because kids learn about computers at an earlier age. This growing pool of PC DIY enthusiasts recognize better performance, features and quality in the products that they choose to buy or recommend, so essentially the PC DIY opinion leaders are willing to pay a little more when they recognize a better product.
And so the PC has moved away from being the one-size-fits-all device that made it so successful, to one of many connected task-specific devices in our personal and professional networks that fills an essential role in the creation, storage and sharing of digital content.