Computer laptop repair service toronto canada

Laptop market explodes as users' needs grow

Watching laptop prices - and their weights - tumble is akin to watching a limbo dance contest: spectators keep wondering, |How low will they go?" But unlike the limbo dance that sees more and more contestants disqualified as they knock the ever-lower bamboo pole from its supports, the laptop arena draws an increasing number of players. And most have little difficulty meeting the barriers to entry, among them: lightweight, compact packages; competitive prices; high performance; and easy-to-read screens.

Portable innovations evolve at breakneck speeds. At Comdex/Spring '88 in Chicago, laptop panelist Amy Wohl, of Bala Cynwyd, PA-based Wohl & Associates and editor of the TrendsLetter, told a skeptical audience she expected, within a few years, to see a sub-seven-pound laptop that would fit easily on an airline tray. She suggested it would have a 286 engine - at least - and a 20MB hard drive. It would even offer a readable screen and a minimum of four hours of battery life, costing slightly less than an arm and two legs. Many Comdex attendees chuckled. Wohl's dream machine sounded like a child of the late '90s, not of the late '80s.

No one's laughing anymore. Compaq Computer Corp. of Houston rose to Wohl's challenge with its LTE 286 less than 18 months later, in October 1989. The 8.5- by 11-inch, six-pound, 286-based unit boasted a standard floppy drive and a 40MB hard drive at a list price of about $6,000. The notebooks had arrived, and ensuing competition snowballed, driving pieces - and dealer margins -through the floor.

According to Willowdale, Ont.-based Evans Research Corp., portable unit sales are growing nearly twice as quickly as are those of their deskbound cousins. While the overall PC market experienced 19 per cent growth in 1990 - a rate it is expected to match this year - the portable segment bounded ahead by 36 per cent last year. And Evans expects it to repeat that performance in 1991, forecasting the shipment of more than 160,000 portable PCs in Canada, worth some $820 million.

A proliferation of vendor offerings designed to meet users' needs propels this rapid growth. At Comdex/Fall '90 in Las Vegas last November, more than 50 manufacturers leapt into the 386SX notebook ring, among them Acer America Corp., AST Research Inc., Bondwell Industrial Co. Inc., Grid Systems Corp. and Twinhead Corp. Dozens more introduced other varieties of portable computers, from Sunnyvale, CA-based Poqet Computer Corp.'s The Poqet PC, a one-pound, DOS-compatible palmtop that runs up to 100 hours on two AA alkaline batteries, to West Des Moines, IA-based DFM System Inc.'s Travelite 286 modular notebook.

"Equipment today is smaller, more powerful, faster and at lower pricing than ever before," said Bob Rompre, a partner in Langley, B.C.-based Canada Portable Computer. "That's good news from the end-user's perspective in that it's more for less. But it's a tough market for a dealer to be in." Established in 1983, primarily to offer support to Tandy 100 users, Canada Portable Computer is one of the oldest portable dealers in the country.

The reseller carries NEC, Sharp, Tandy, Toshiba and Zenith portables - and a slew of specialty products geared to the mobile PC user.

While its reputation as an expert in the portable niche has attracted clients from as far afield as Toronto, Rompre admits his firm is feeling the heat from competing discount superstores and large chains that live by the |high-volume, low-margin' credo.

"If you compare their service to ours, we stack up much higher," he said. "But unfortunately, so many clients are just looking at prices."

The laptop market's volatility makes it tough for dealers and consumers alike to track pricing. Richard Eckerlin, president of Montreal's Ultrasoft Innovations Inc., noted the original NEC Ultralite listed for about $5,500. "Today that machine goes for about $1,500 - and a trade-in is worth half that."

Knowing his clients are watching their dollars closely, especially during this rough economic period, Eckerlin keeps his finger to the pulse of the laptop industry to learn in advance when price reductions are on the way. He shares this inside information with potential buyers who may postpone their purchase for several weeks to cash in on the savings. While Ultrasoft may not make as much on the initial sale, the satisfied customer is likely to invest the money she saved in add-ons which boast better margins.

Eckerlin advises first-time laptop buyers to consider a low-end machine if they aren't power users. The machine lets them master simpler applications like basic word processing and spreadsheets. As their needs progress, Ultrasoft allows them to trade in their portable PCs toward the purchase of a more advanced unit. The trade-in program gives Ultrasoft an edge over competitors who don't offer one, Eckerlin said.

Few dealers want the hassle of dealing with trade-ins. Rompre recalls accepting a dual-floppy NEC MultiSpeed on consignment. It sat on his front counter for four months, he said, and didn't get a single inquiry.

Nainesh Bahal, general manager of Toronto dealership Compatibles Plus Inc. also discourages customers from trading in their older units. He knows they'll be disappointed with the price it will fetch. "If it was worth $1,500 last year," Bahal said, "it's probably not even worth $500 now."

Portable PC margins are paper-thin, pushing them into the commodity zone. Because most systems come ready-configured in an all-in one package, "you can't say you add value to it," said Bahal. That's why desktops - which account for about half his sales - offer higher margins; he can upgrade the system by using a better hard drive, suggesting a higher-quality monitor, tossing in a better VGA card.

Since these options are rarely availalbe in portables, dealers must find other ways to differentiate themselves from their rivals.

For Bahal that means offering loaners when laptops come in for repair. More importantly, it means knowing the mobile niche inside-out, to be able to suggest cigarette-package sized modem and fax units like WorldPort from U.S. Robotics or Touchbase Systems' lines. Or bundling portable printer with the laptop in a briefcase.

Ultrasoft, which opened five years ago to publish software for the early Tandy portables, boost revenues through accessory sales. Today, the purveyor of 10 brand-name lines of portable, from palmtops to luggables,also offers "strange and bizarre add-on products that conventional dealers would have difficulty getting their hands on."

Recently, Ultrasoft teamed with Canada Portable Computer and Montreal's Porta-Lap Plus to form an informal network of portable-only dealers. Occasionally, one member will buy a specific laptop in large quantities to get the volume discount, and then sell some to other members. The group welcomes inquiries from other portable-dedicated resellers who are looking to be in the mobile market long-term.

Who's buying portable computing? In a word, everyone. Bahal said while laptops were originally aimed at an upscale, on-the-go executive market, pricing now allows even students and secretaries to own them. "The Olivetti XT with 20MB for $1,000 can be bought by anybody," said Bahal. "At the low end, those who always wanted to buy one but couldn't afford it are finding the XT attractive for simple word processing."

For the corporate power user a 386SX is ideal as a desktop replacement, Bahal added. "Some people are buying a full-sized keyboard and a monitor to make it their primary machine."

Ultrasoft's Eckerlin agreed. "If you had spoken to me two years ago, my opinion would have been that laptops were desktop extensions. Now, they're replacement."

Despite the advances in portable computing, there's plenty of room for further innovation. Color laptops became a reality last year, with the introduction of laptop leader Markham, Ont.-based Toshiba of Canada Ltd.'s T5200C and T3200SXC units. Sharp Electronics of Canada Ltd. in Mississauga, Ont. now offers the PC-8501 and PC-8081. And Hitachi (Canada) Ltd. also of Mississauga, recently unveiled its HL500C. The high-resolution 256-color VGA displays are breathtaking, ideal for computer-aided design, desktop publishing and graphics applications.

Still, Bahal admitted their drawbacks are many: it's tough to justify spending $8,000 to $15,000 for a color screen when most laptops have ports for regular color monitors costing less than $4,00 and they are heavy, usually weighing upwards of 15 pounds.

As for the future of portable computing, "We'll see 150 to 200MB units within two years," Bahal predicted. "They'll weigh four, five or six pounds with a color screen and a phone built in. And it will retail at $5,000 to $7,000." An interesting concept.