China’s top PC maker, Legend Holdings, has launched its first generation of internet PCs and its own Web portal. It has also has struck an agreement with incumbent telco China Telecom which will provide buyers of the new PC a year of free unlimited internet access.
Legend chairman Liu Chuanzhi said the new products aimed to solve the three main difficulties faced by Chinese internet users, complicated operation, content search and connection.
By combining the PC, internet content and internet connection, the Legend Conet is a novel three-in-one PC, he said.
Executive director and senior vice-president Mary Ma Xuezheng predicted the new products would account for more than 60% of Chinese home PC purchases, which in turn would account for about 35% of total PC shipments.
Legend has forecast production of 1.2 million PCs in the current financial year to March 31, aiming for a 30% increase the following year. In the last quarter its share of the domestic PC market had grown to nearly 25%.
Company officials said the new products would also be good for the bottom line as they have a higher gross margin than existing products thanks to greater control over components and content, even including the subsidies the company will have to pay for the free internet access.
Ma said the main short-term objective in launching the content service was to promote the sales of PCs rather than building up advertising revenue and e-commerce business which is the medium-term strategy. Legend plans to draft a three-year strategy focusing on the development of internet hardware and the provision of internet content and services.
There are three models of the Conet range, retailing for 9,988 yuan ($1,200), 12,988 yuan ($1,565) and 17,998 yuan ($2,170).
