Virtually identical laptops produced by the same Original Design Manufacturers (ODMs) are available at drastically different prices. There is no material difference in quality between laptops made by the same ODM, and enterprises should think twice about paying a premium price for brands solely based on perceived quality. Pay a premium only if superior, post-sale support is offered.
Who Really Makes the Laptops?
Brand firms such as Dell and Toshiba neither produce nor design their own laptops. Instead, a small number of ODMs design and produce virtually all the laptops in the world. ODMs make available a selection of designs, and the name-brand companies decide which laptops to add to their product line-up. The brand firms then integrate standardized components according to customer orders, such as different hard drives, etc.
The following table is a distribution of world market share in laptop production (source: iSuppli):
ODMs with In-House Brands
Some ODMs provide exactly the same PCs at a much cheaper price under their own in-house brands. IT managers can benefit from making purchases of top-quality products at drastically reduced prices. For example, at the high end, the Voodoo Envy Hu: 709 is priced at around $4,000, even though the exact same machine is available from its ODM Clevo under the name of Sager NP9750 for a little over $2,000. While ODMs do not like to publish this type of information, to avoid hurting their relationships with the brand manufacturer clients, details about the true manufacturer can be found using the FCC ID.
No Material Difference in Quality between Most Brands
More commonly, rather than offer their own laptops, an ODM will produce laptops for competing name brands. For example, the market leader Quanta manufactures laptops under the brands of Acer, BenQ, Compaq, Dell, Fujitsu-Siemens, Gateway, HP, Lenovo, NEC, and Toshiba. In other words, since all the laptops are essentially coming from the same manufacturer, there is no material difference in quality. Click here to see a downloadable table that illustrates the relationship between laptop ODMs and brand manufacturers as of September 20, 2006.
Choose Based on Support
Simply because the different brands offer essentially the same product doesn't mean that purchases should be based on price alone. An additional key differentiator between brands should be the level and cost of post-sale help and support that is available. Consider the length of standard warranties, the availability of extended warranties, the cost of support services, and the turnaround time in support situations.
Recommendations
- Clearly define the specifications for any laptop purchase. This will ensure that comparisons are made on an apples-to-apples basis.
- Determine the ODM of the brands under consideration. Quality may still differ between ODMs, so focus scrutiny here.
- Find the cheapest price based on the same specifications. There should be no significant difference in quality if two laptops are made by the same ODM. In cases where two laptops have similar specifications and are made by the same ODM, they are likely to be the same laptop inside. In this case, do not pay a premium price for one brand. The more expensive laptop doesn't have superior manufacturing or design – only superior marketing.
- Choose vendors based on the quality of their post-sales support. While it's not worthwhile to pay more for laptops if a virtually identical version is available from the same ODM, it's sensible to choose one brand over another due to the amount of service and support offered. Post-sale service and support can amount to a large hidden cost and should be a significant component in the decision process.
Bottom Line
Even with different branding, laptops have become standardized products that are often manufactured by the same ODM. In most cases, there is no need to pay premium prices for products with similar specifications. Instead, let post-sale service and support be the key determining factor.
