Budget PCs could help Taiwanese firms in downturn

Thinking small might help Taiwan's computer industry emerge from the global downturn as an even bigger global player.Taiwan-made mini-laptops burst onto the world's electronics scene with an estimated 11 million units sold last year. This year, sales could hit 22 million units, according to several analysts. In comparison, 120 million standard laptops are expected to be churned out this year.

While the worldwide computer market is suffering through its worst sales in years, one bright spot is coming from the mini-laptops known as "netbooks," which appeal to the budget-conscious in tough times.Growth in netbooks could be well timed for Taiwanese contract manufacturers, which need to keep their assembly lines busy during a falloff in orders for conventional laptops and desktops. Some 85 percent of all laptops are made by Taiwanese companies.

AsusTek and Acer netbooks are among the top-selling computers listed by Amazon.com, the leading online retailer, and Business Computer News Ranking, a Japanese market research firm. And sales of those computers figure to help Acer and AsusTek raise their profiles abroad with consumers who might remember those brands when shopping for desktops and standard laptops, said Tu Tze-chen, head of research at Taiwan's Industrial Technology Research Institute.