Asustek Computer Inc (華碩) chairman Jonney Shih (施崇棠) yesterday said the company does not rule out acquiring smartphone maker HTC Corp (宏達電), which last week said it might post a loss this quarter.
“We had an informal internal discussion regarding this matter [acquisition]... However, to make a decision, we need to consider [both companies’] intentions and evaluate whether it is the correct strategy,” Shih told reporters after the company’s annual general meeting.
Shih said he believed HTC was seeking and analyzing countermeasures to solve its problems, and he hoped the company would be able to turn its business around.
Photo: CNA
In contrast to HTC’s cloudy outlook, Asustek remains upbeat about its smartphone business.
Asustek CEO Jerry Shen (沈振來) told shareholders that the company is confident that annual smartphone shipments would grow to between 17 million and 25 million units from last year’s 8.5 million, backed by strong Chinese demand.
While Xiaomi Corp (小米) also focuses on mid-priced, high-performance smartphones, Asustek still has the edge over its Chinese rival in overseas markets, Shen said.
“Xiaomi is doing well in the domestic market, but it needs to think of new ways to secure a position in the international market,” he said.
Asustek has more experience marketing its brand overseas and knows how to engage with consumers in different regions, Shih said.
PC maker Lenovo Group Ltd (聯想) tried to operate its smartphone business in the same way it managed its PC business, but that did not work out, he said.
Lenovo’s recent announcement of a management reshuffle suggests that it requires more creative thinking to run a smartphone business, Shih said.
“With the right strategy, Asustek would not face a situation similar to Lenovo’s,” Shih said.
Apart from smartphones and computers, Asustek is exploring new businesses, such as robots.
Shih said he would personally monitor the progress of robot development on a weekly basis, to ensure that its design development is on the “right track.”
He declined to elaborate because the project is still in an early stage, but said the company plans to initially focus on consumer service robots.
For this quarter, Asustek chief financial officer David Chang (張偉明) said the company expects better performance than in the last quarter, citing strong sales in the past two months.
“As we recorded foreign exchange gains in the past two months, it is unlikely we would post a foreign exchange loss again this quarter,” Chang told shareholders.
The company booked NT$349 million (US$11.18 million) in foreign exchange losses during the first quarter.
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