NEWS

Market watchers pessimistic about 2-in-1 market

Although several brand vendors including Asustek Computer, Lenovo, Acer, Hewlett-Packard (HP) and Dell are all preparing to launch new 2-in-1 devices in the second half of 2016, some market watchers are concerned that demand may be limited.

These brands are rushing to bring out new models as now Microsoft appears to delay the release of its new Surface Book to April 2017, instead of in the second half of 2016 as expected, said the sources.

The delayed launch of the next generation Surface Book is believed to follow Intel's roadmap for its Kaby Lake processors, which will be used to power the new Surface, said the sources, adding that the Kaby Lake CPUs are not available until the end of 2016.

To maintain the sales momentum of the Surface Book, Microsoft plans to launch upgraded models of its Surface Pro family products with improved CPU performance in the third quarter of 2016, indicated the sources.

Asustek also plans to launch a Surface Book-like model soon to cash in on the prevailing trend for 2-in-1 products, revealed the sources, adding that Asustek will roll out the new model at a rate of 40,000 units a month.

However, since the 2-in-1 models mostly come with a display in 12- to 13-inch size, demand for such models are likely to be limited, and therefore the proliferation of new models is likely to bring a price war in the segment in the second half, commented the sources.

Source: Digitimes