Lenovo on Monday introduced its first all-in-one desktop PC for business, pitching the sub-$500 system as having several advantages over tower PCs.

The A70z, which sports a 19-inch screen and Intel Core 2 Duo processor, takes up less space than a traditional desktop, consumes less power than a system requiring a separate monitor, and is faster to set up and service, according to Lenovo.

Computer makers in general have been touting all-in-one desktops to businesses as space-saving alternatives to traditional desktops. Industry observers expect manufacturers to significantly increase their AIO portfolios next year to try to boost desktop sales, which have fallen dramatically due to the popularity of laptops.

Dell in July, for example, introduced the Vostro, an AIO that ships with a 19-inch display and a base configuration that includes an Intel Celeron processor, 1 GB of memory, and a 160-GB hard drive. The system starts at $499 with Microsoft's Windows Vista operating system.

Lenovo's A70z has the same starting price and monitor size, but comes with an Intel Core 2 Duo chip and the new Windows 7 OS. In addition, the system has a DVD burner, six USB ports, and is available with up to 500 GB of storage. The A70z comes with Lenovo's power management technology that can reduce energy consumption by enabling IT organizations to remotely deploy power schemes and settings. The desktop is scheduled to be released at the end of the month.

Along with the new AIO, Lenovo introduced the ThinkCentre A58e tower desktop, which has a starting price of $349. The A58e, released Monday, is available with either an Intel Core 2 Duo or Celeron processor, up to a 320-GB hard drive, and 2 GB of memory.

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