TV-maker Vizio adds PCs to its lineup

By
Jefferson Graham, USA TODAY
January 7, 2012, 10:10 AM ET
2 min read

IRVINE, Calif. -- Vizio, the company best known for selling budget flat-panel TVs, is going retro. It's unveiling a line of low-cost, but high performance personal computers at the Consumer Electronics Show in Las Vegas.

The TV market has been flat for the past two years, while PC sales — despite the enthusiam for next-generation products like tablet computers and smartphones — is growing.

The way consumers are actually using PCs "is expanding, not contracting," says Matt McRae, Vizio's chief technology officer. "They come home and use their PC for e-mail, but they're also using it for entertainment experiences."

Vizio has five computers to show off at CES: two all-in-one desktops with 24-inch and 27-inch monitors, two laptops with 15.6-inch screens, and a thinner notebook with a 14-inch screen.

The computers will go on sale in May; Vizio hasn't announced pricing but says it will be line with its TV-pricing model, which undercuts competitors.

"On its face, it sounds crazy," says Tom Mainelli, an analyst with technology research firm IDC. "But when you start thinking about it, it's not as crazy as it seems." Vizio has carved out a good brand name for itself with TVs, and offering hardware to consume media on the TV, tablet and PC from the same company "is a concept that has legs."

Vizio's hope is that consumers who enjoy the big screen Vizio experience will see the attention to video (the big monitors) and audio (the desktops come with sub-woofer speakers) and view the PCs as more entertainment-oriented than competitors.

While the PC market "wasn't what anyone expected or hoped, we still see growth worldwide," says Mainelli.

In 2011, 352 million PCs were shipped, up slightly from 346.8 million the previous year. IDC sees shipments picking up in 2012 to 371 million, and growing to 505 million by 2015.

Meanwhile, the TV business is very flat. Sony and Samsung complained in recent earnings reports of weaker TV sales. Paul Gagnon, analyst with market tracker Display Search, says flat-panel sales are down 4% this year. "3D wasn't the catalyst everyone thought it would be," he says.