--Vizio launches five PCs
--Pricing for laptops starts at $898
--Electronics company is hoping to change PC industry like it
did with TVs
(Updates with additional details and analyst comments in the
10th, 11th, 15th, 18th, 19th and 20th paragraphs.)
By Shara Tibken
NEW YORK--Vizio Inc. Thursday unveiled a line of laptops and
all-in-one desktop computers, marking the electronics maker's first
push into the personal-computer market with pricing that starts at
$898.
The Irvine, Calif., company, which ranks as one of the top
sellers of televisions in the U.S., announced five different
computers at a New York event. The products will be available this
summer in time for the back-to-school selling season.
Vizio first showed the products, which run Microsoft Corp.'s
(MSFT) Windows operating system, in January at the Consumer
Electronics Show in Las Vegas.
Vizio shook up the market with inexpensive high-definition
televisions, and it is trying to do the same in the PC industry.
The closely held company, which also produces Blu-ray players and a
tablet, worked on the computer designs for a couple years in an
attempt to offer an aesthetic that competes with Apple Inc.'s
(AAPL) popular products but at a lower price.
The new PCs announced Thursday will start at $898 for a 14-inch,
thin-and-light laptop. That compares with $999 for the
least-expensive, 11-inch Apple MacBook Air and the approximate
$1,000 pricing for most new, thin-and-light notebooks, dubbed
ultrabooks by chip company Intel Corp. (INTC). A 27-inch,
all-in-one desktop, Vizio's highest-end computer, starts at
$1,098.
"People don't need another PC manufacturer giving them a bunch
of junk at a low price," Vizio Chief Executive William Wang said.
He stressed that Vizio used high-end components to help it target
tech-savvy consumers who can't afford pricy notebooks.
Vizio isn't targeting the high end of the PC market, he said in
an interview following the event.
"Our target audience is people who can't afford a $2,000
notebook," Mr. Wang said.
Vizio is entering the crowded computer market at a time of
upheaval. PC makers such as Hewlett-Packard Co. (HPQ) and Dell Inc.
(DELL) have faced falling prices and sluggish sales as consumers
instead choose to spend their dollars on smartphones and
tablets.
Computer makers are counting on new designs and Microsoft's
Windows 8 operating system to reinvigorate the sector. Vizio,
meanwhile, believes its products will entice consumers looking for
distinctive designs at attractive pricing, much like it did in the
TV market. Its new computers bear a striking resemblance to those
from Apple but generally cost less.
"They've got the right pricing," NPD Group analyst Stephen Baker
said. "But the big challenge is what everyone faces--the market
isn't strong right now."
Matthew McRae, Vizio's technology chief, said people commonly
ask why Vizio would enter the PC market at this time.
"If anyone says you can't disrupt a mature market, they're
wrong," he said, using the TV market as an example.
The products introduced Thursday include two thin-and-light
notebooks with 14-inch and 15.6-inch screens; a 15.6-inch standard
notebook; and two all-in-one desktops with 24-inch and 27-inch
displays.
Each machine's keyboard includes a special "V" function button
that allows users to access online content, such as Netflix Inc.'s
(NFLX) streaming video.
The products uses Intel's newest processors, and most include
Nvidia Corp.'s (NVDA) new, discrete graphics.
"Every single component has the highest specs," Mr. McRae
said.
Vizio will be selling the products through retailers such as
Wal-Mart Inc. (WMT) and its Sam's Club stores; Amazon.com Inc.
(AMZN); Costco Wholesale Corp. (COST); Target Corp. (TGT) and
Microsoft's new stores.
It also plans to create mini-stores--built into shipping
containers--that it will move around the country, visiting
colleges, music festivals and other events.
"We want to bring the experience all the way out to the
consumer," Mr. McRae said.
Write to Shara Tibken at shara.tibken@dowjones.com