Taiwan's BenQ joins low-cost netbook PC market

TAIPEI, Sept 25 (Reuters) - Taiwan's BenQ, the branded unit of Qisda Corp (2352.TW), joined PC rivals to introduce smaller, low-cost notebooks carrying its own name on Thursday, and it aimed to grab a 5 percent share of the new market within two years.

Asustek Computer's (2357.TW) low-cost Eee PCs have been warmly received since hitting the market about a year ago, prompting many technology firms, including Acer (2353.TW) and Dell (DELL.O) to develop similar portable computers.

Eee PC, Acer's Aspire One and other similar models are called netbooks, which are smaller and cheaper than regular notebook PCs and aimed at emerging markets and buyers of additional computers.

Earlier this month, Acer, the world's No. 3 PC vendor, said it expects the global netbook market to reach 50 million units in 2009, and it aims to take 30 percent of that market by selling 15 million units of its own mini PCs. "For our new products, we hope we can have about five percent market share in one to two years," BenQ Corp Chief Executive Officer and President Conway Lee told reporters at a news conference, where BenQ displayed its "Joybook Lite" netbooks.

Lee did not give sales and shipment forecasts of its Joybook Lite PC, weighing about 1 kilo, and which has a 10-inch LED-backlit display and a sleek outer shell to attract design-conscious customers.

On Thursday, Qisda shares fell 2 percent and Asustek shares lost 1.4 percent, lagging the main TAIEX's 1.2 percent fall. Acer shares rose 0.2 percent.

BenQ, which lost about $1.2 billion after it failed to turn around the mobile phone unit of Germany's Siemens (SIEGn.DE), was spun off from its manufacturing unit after the business declared insolvency in Europe last year.

BenQ's branded business had revenue of T$59.5 billion ($1.86 billion) in 2007.

The firm has continued to run its contract manufacturing business under the Qisda name, and has been producing products such as projectors, LCD monitors and TVs under the separated BenQ company. (US$1=T$32) (Reporting by Baker Li, Editing by Ken Wills)