From Cover, issue 343, November 26th 2007
Translated by Zuo Maohong
Original article: [Chinese]

What can a 280,000-dollar laptop do?

Alot, according to the Holland-based makers of TulipEgo. But if thats not enough, they studded the upper shell of their product with real diamonds anyway, for good measure.

But this phenomenon isn't limited to boutiques laptop makers. Whether one understands it or not, almost every top-grade PC company has brought out luxurious models while simultaneously promoting low-priced PCs for the masses. The luxury models, such as Lamborghini ASUS and Ferrari Acer, not only have some the most powerful configurations to date, but are also heavily scrutinized to be visually impressive-- overwhelming, even.

And now, manufacturers in mainland China are following the trend as well. Both Lenovo and Haier have launched their own luxury PCs—the ThinkPad Reserve Edition, which sells at 50,000 yuan, and the Haier Flybook V5/VM, respectively.

The ThinkPad Reserve Edition, with distribution limited to 5,000, was designed in part for the 15th anniversary of ThinkPad notebooks, says Quan Xiaoyan, key account manager of the ThinkPad series of Lenovo.

Bound by French leather in traditional Japanese saddle stitching, the laptop also features a personalized name carving on its shell. It is only sold on line, and Lenovo contacts customers who show interest in the product to provide “consulting services” regarding its purchase.

Both screens of Haier’s Flybook VM and V5 are have completely adjustable displays. The brightly colored V5 is small enough for a purse. But despite its portability and flexibility, its impossible find it on display in any computer store in Zhongguancun, Beijing’s computer shopping district. They’re so expensive that sales clerks only produce the computer after a potential buyer pays a deposit, for fear of possible damages that could ocurr.

Eight years ago, for a Chinese to spend over 10,000 yuan on a laptop was as uncommon as it was extravagant. But luxury laptop purchases have grown along with a general boom in the market; laptops have become a household appliance in the wake of falling prices that have broke the 5,000 and 4,000 yuan mark. They are now ubiquitous at college campuses in China.

But if consumers are most interested in low-end laptops, why are manufacturers going against the current and launching such costly products one after another?

Fang Chunsong, general manager of mobile computing at Haier, says the move has to do with flexing technological muscle. Having long been recognized as a trustworthy electric appliance manufacturer, the company now is sparing no effort to prove its “strong ability in research and technology development” in the PC industry.

As for Lenovo, it says the ThinkPad Reserve Edition would be successful if it can bring a feeling of honor and pride to the user. According to the company’s vice president Xia Li, most of the laptops have been booked by its important business clients and partners around the world.

Xia dismisses the idea that the move is a prelude to an obsession with luxury products, and emphasizes the company’s devotion to products in all classes. Yi Xiaohui, general manager of notebook PC marketing department of Lenovo China, also says the leather-bound laptop has more to do with the company's image.

What’s worth noticing is that the machine is labeled with Lenovo’s logo, but not IBM’s, on its internal shell, which could be interpreted as a subtle celebration of the company’s success in taking over IBM’s desktop PC business.

According to Haier, the two series have been quite well received, with sales around 300 a month.

The virgin land of luxury PCs will only be coveted by more and more companies. According to a report released by Boston Consulting Group in October, there are two trends of consumption in today’s China, namely, “upgrade consumption”, and shopping in search for treasures. The second indicates that consumers are more willing to pay for specials. Reports from Earnest & Young say China will become the second biggest luxury consumer by 2015, with over 11.5 billion dollars spent on luxury goods per year.

Businesses have responded to the trend by designing products that are attractive enough for those luxury pursuers. But a high price doesn’t mean luxury-- they've learned that China's luxury laptop consumers are not just looking for high-powered machines, but also ones that are in some way unique.