Seagate ST98823A Whitebooks: An Imperative Opportunity (187K, PDF) - Page 2

Whitebooks: An Imperative Opportunity While the move toward mobility presents an opportunity for system builders, it also requires them to diversify product offerings, supplementing commoditized desktop systems with high-margin customized notebook computers. Gartner reports that more than 90 Desktop Price Bands 100% percent of desktop computers will sell below US$1000 in 2007, and by 2010, 90 percent of desktops will sell for less than US$800 (see Figure 2). Not surprisingly, notebook computer prices are expected to hold up much better over the same period. Mobile Price Bands 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 $2,000 Figure 2. Gartner Worldwide PC Forecast for desktops and notebooks, June 2006. Verified by Intel The Verified by Intel program ensures notebooks not only meet Intel's specifications for component interchangeability, but also pass Intel's "mobility vectors" testing, meet Intel's requirements for providing a suitable "out-of-box experience" for the reseller and incorporate the same Intel front-line post-sales support offered on Intel's own product line. 2 Breaking Barriers, Succeeding in the Whitebook Market The whitebook market presents a tremendous opportunity for system builders to increase their competitiveness and profitability. However, system builders who offer whitebooks have struggled over the past several years against four major barriers: • Availability of components. Rising demand for laptops, insufficient whitebook infrastructure and recent component shortages have complicated sourcing. • Price and profitability. Branded integrators have the advantage of volume discounts, making it very difficult for system builders to compete in the lower price bands. • Warranties and support. Non-standardized whitebook design made service difficult and warranty support was too complex. • Brand. Without clear brand differentiators, system builders found themselves competing with larger, branded integrators solely on price. New technology, coordinated programs and assistance from technology suppliers, such as Seagate and Intel, enable system builders to overcome these barriers and succeed in the whitebook market. Break the Component Availability Barrier Unlike the whitebox market, the whitebook market was plagued by non-standard components early on. To empower its notebook channel customers, Intel launched the Common Building Blocks (CBB) program in 2005, which streamlines and standardizes the component supply chain for whitebooks. In addition to the CBB program, Intel has launched the Verified by Intel (VBI) program with the leading barebones suppliers (ASUS, Compal and Quanta) in order to facilitate compatibility and interchangeability of common building blocks as well as putting in place improved quality tests. Under the program, Intel tests and verifies these seven components for adherence to mechanical and electrical specifications: hard disk drives, LCD panels, optical drives, keyboards, batteries, AC adapters and customizable notebook panels. These parts can be easily switched out of chassis from leading notebook barebones manufacturers ASUS, Compal and Quanta, providing whitebooks the same type of part interchangeability available in the desktop market.