Vizio applies Tv-pricing strategy to PCS

Plans to sell budget, high-performance PCS

IRVINE, Calif. — Vizio, the company best known for selling budget flatpanel TVS, is going retro. It’s unveiling a line of low-cost but highperformance personal computers at the Consumer Electronics Show in Las Vegas.

The TV market has been flat for the past two years, while PC sales — despite the enthusiasm for next-generation products such as tablets and smartphones — are growing.

The way consumers are actually using PCS “is expanding, not contracting,” says Matt Mcrae, Vizio’s chief technology officer. “They come home and use their PC for e-mail, but they’re also using it for entertainment experiences.”

Vizio has five computers to show off at CES: two all-in-one desktops with 24-inch and 27-inch monitors, two laptops with 15.6-inch screens and a thinner notebook with a 14inch screen.

The computers will go on sale in May; Vizio hasn’t announced pricing but says it will be in line with its Tv-pricing model, which undercuts competitors.

“On its face, it sounds crazy,” says Tom Mainelli, an analyst at technology research firm IDC. “But when you start thinking about it, it’s not as crazy as it seems.” Vizio has carved out a good brand name for itself with TVS, and offering hardware to consume media on the TV, tablet and PC from the same company “is a concept that has legs.”

Vizio’s hope is that consumers who enjoy the big-screen Vizio expe- rience will see the attention to video (the big monitors) and audio (the desktops come with subwoofer speakers) and view the PCS as more entertainment-oriented than rivals’.

While the PC market “wasn’t what anyone expected or hoped, we still see growth worldwide,” says Mainelli.

In 2011, 352 million PCS were shipped, up slightly from 346.8 million the previous year. IDC sees shipments picking up in 2012 to 371 million and growing to 505 million by 2015.

Meanwhile, the TV business is flat. Sony and Samsung complained in recent earnings reports of weaker TV sales.