An Acer ultrabook at the Consumer Electronics Show in Las Vegas. AFP
An Acer ultrabook at the Consumer Electronics Show in Las Vegas. AFP
An Acer ultrabook at the Consumer Electronics Show in Las Vegas. AFP
An Acer ultrabook at the Consumer Electronics Show in Las Vegas. AFP

PC makers try thin end of the wedge


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Computer makers are trying hard to shake-up their stagnating market. But, so far, consumers do not seem sold on their latest innovations.

This month the world's top three PC makers, Hewlett-Packard, Lenovo and Dell, each unveiled new "ultrabooks". Yet this emerging category, which combines features of a tablet and is essentially a slimmer, lighter laptop, has been a tough sell.

Ultrabooks were "quietly introduced" into stores during the winter holiday season, according to Mikako Kitagawa, a principal analyst at the research company Gartner. Yet, she notes they "didn't seem to draw consumers' attention".

"Consumers had very little understanding and awareness of ultrabooks, and only a small group of consumers was willing to pay the price premium for such models," says Ms Kitagawa.

Combined, companies with ultrabooks and other kinds of PCs shipped 92.2 million units in the final quarter of last year, which was the first drop after two quarters of growth and a 1.4 per cent fall from the end of 2010, according to data released last week by Gartner.

The chip maker Intel hopes ultrabooks will reinvigorate the industry, much like netbooks and tablets have in the past, and more partners are using its processors in new models for the UAE.

Two weeks ago, Lenovo released its IdeaPad U300 Ultrabook, boasting that its lighter than a 1.5-litre bottle of water and thinner than "your average fashion magazine".

The Dh4,499 (US$1,224) computer weighs as little as 1.32kg and is 14.9mm thick at its thinnest point. Despite its downsizing, the U300 claims a battery life of eight hours.

It is crafted from a single-piece aluminum shell, with scratch-resistant colouring, and includes a 13.3-inch screen. But one of its handiest features is a "breathable keyboard", which sucks air through the keyboard then pushes it out through the sides and rear hinge -rather heating the user's lap.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

if you go

Getting there

Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.

Staying there

On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.

More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr