BenQ READIES CE PUSH WITH LCD TVs, FRONT PROJECTORS

The former Acer unit’s further push into LCDs and front projectors will be supplemented with digital audio players, Symbian-based cellphones, keyboards and possibly DVD recorders as the company seeks appeal with a broad portfolio of products, Mktg. Vp Al Giazzon said. And while BenQ’s LCD monitor distribution has chiefly been confined to retailers like Amazon.com, Buy.com, and TigerDirect.com, there are signs it’s making inroads with brick-and-mortar dealers. CompUSA is expected to start carrying a selection of BenQ’s LCD monitors in May as the company widens its line to include 23.1W ($2,999) and 17W models ($839) with 1,600x1,200 and 1,280x1,024 resolution, respectively. BenQ also will likely seek to put its LCD TVs into the chain’s merchandise mix, company officials said. CompUSA officials weren’t immediately available for comment.

“In some categories there may not be a big opportunity, but the ability to provide a full portfolio is going to help you get in other products that are profitable,” Giazzon said. “It’s really about packaging a portfolio for each retailer and looking and seeing where the opportunity lies. We can bring a nice product portfolio to a retailer and see what makes the most sense.”

BenQ’s emphasis on LCDs will extend to the larger sizes as well, as it replaces a 46W plasma display sourced from Chunghwa Picture Tubes with a similarly sized LCD manufactured by affiliate AU Optronics. The 46W LCD TV ($12,000) is expected to ship around Nov.-Dec. At the same time, BenQ has discontinued 42W plasma displays and will deliver by midsummer a pair of 30W LCD TVs segmented to target specialty CE dealers and national chains, Giazzon said. The 30W models, targeting specialty dealers, have a different design and slightly higher brightness than those sold through national chains, a BenQ spokeswoman said. The 30W was first shown at the CEDIA Expo last Sept. and is scheduled to ship in late 2003. But the introduction was postponed as BenQ’s own brand queued up with OEM customers for the limited supplies available, the spokeswoman said. The 30W’s price, originally $4,995, has dropped to $4,000 to match competitive price points, she said.

BenQ’s segmentation strategy, expected to be nailed down the next several weeks, will be pursued in LCD TVs as well as high- end home theater front projectors, Giazzon said. “LCD is really our strength because of AU, and we want to focus on areas where we have more vertical integration and more control over the price points, availability and supply,” he said: “We see this as more a development year for large-format LCDs for TV applications and having the opportunity to build relationships within the channel.”

BenQ’s LCD TV lineup now consists of 15” and 20.1” models, which have 1,024x768 and 800x600 resolution and are priced at $1,300 and $700, respectively. The 15” initially was priced at $995 and a 26W model has been added. In PC monitors, BenQ is expanding its sales from online retailers with its first brick- and-mortar deal with CompUSA -- expected to receive its first shipments in May, Giazzon said. At the same time, BenQ unveiled 17” ($839) and 23.1” ($2,999) LCD PC monitors, featuring 1,280x1,024 and 1,600x1,200 resolution and 300 and 250 lumens, respectively. Both have 500:1 contrast ratio.

With the emergence of branded LCDs, BenQ will weigh adding assembling them in its Tijuana factory, which currently is dedicated only to OEM products, Giazzon said. The Mexico plant will likely come more into play for assembly of large LCDs, he said. BenQ currently assembles CRT-based and smaller LCD monitors in Tijuana for OEM customers.

As it moves to establish a U.S. market presence for LCDs, BenQ also is weighing the addition of a dual-format DVD recorder expected to be available in the Far East this year. BenQ, a major supplier of DVD recording drives for PCs, also is shifting its emphasis in that market to dual format, the company spokeswoman said. In the U.S., any introduction of a DVD recorder will hinge on BenQ’s ability to find a niche in a market where prices have declined rapidly. “Our decision would be based on whether we can build a profitable business with it and whether it extends our brand,” Giazzon said.

BenQ’s strategy for digital audio players will likely have a more immediate impact on the U.S. as it brings the Joybee 102 and 180 models to market in May-June, the company said. The silver dollar-sized Joybee 102, which weighs ? ounce, is compatible with Windows, Macintosh 9.0 and Linux 2.4 and higher operating systems. It will come in 128 ($129) and 256 MB ($189) configurations. The Joybee 180 also will ship with 128 MB ($249) and 256 MB ($299) memory and add an FM tuner, voice recorder, LCD display and Microsoft’s digital rights management (DRM). It supports the MP3 and Windows Media formats. BenQ will step into hard drive-based digital audio players with the launch in July of the Joybee 700 ($370), will have a 15 GB capacity, 2” LCD with 160x160 resolution and USB 2.0.

In cellphones, BenQ has shipped 2 GSM world phones and a combination GPRS/802.11b PC Card to wireless carriers. It plans to offer Symbian-based smartphones 3rd quarter, although the line hasn’t been finalized as BenQ’s U.S. unit reviews designs including clamshell. BenQ entered the cellphone business 5 years ago as an OEM but plans to shift some focus to its own brand starting with a 4th quarter promotional campaign, Giazzon said. BenQ’s cellphones will be aimed at the entry and mid-priced market. It will offer the 660C, a tri-band 900/1,800/1,900 MHz clamshell model with Java, WAP 2.0 browser, color display and external OLED sub-display. The step-up S670C clamshell adds an integrated camera and GPRS data. The phones will be marketed with a hybrid GPRS/802.11b Type II PC Card operating on 850 MHz, 1,800 MHz and 1,900 MHz.

Another sign of BenQ’s shifting some OEM prowess to branded product will be in PC keyboards. A major OEM supplier of keyboards for notebook PCs, BenQ will field 3 SKUs designed with Cal.-based BMW Group Designworks, which has recently broadened its business beyond automobiles to other consumer products including Motorola gear. The keyboards also use BenQ’s X- Structure Key Technology, designed to allow for a slimmer design. The line starts with an basic entry-level wired model ($40) and moves to a wireless version ($100) that features a WideTrack scroll wheel along the keyboard’s left side and 13 Internet “hot” keys. The top-end x750 adds Bluetooth that allows for wireless connections up to 30’ and ships in July at $139. The Bluetooth model is priced below those of rival Logitech, which generally run $200-$250. The lower price isn’t a function of BenQ’s accepting lower profit margins but its position as an OEM supplier, Giazzon said.