Tue, Sep 15, 2015 - Page 13 News List

Asustek to widen localization in Indonesia

By Lauly Li  /  Staff reporter

In an attempt to reduce tariff expense and to meet the rising smartphone demand in Indonesia, Asustek Computer Inc (華碩) plans to increase the localization of smartphone manufacturing in that nation from 75 percent this year to 100 percent next year, it said yesterday.

“Asustek started to work with Indonesian manufacturer PT Sat Nusapersada Tbk on production of the ZenFone models at its factory in Surabaya in the second quarter,” Asustek chief financial officer Nick Wu (吳長榮) said by telephone.

Indonesia is Asustek’s largest overseas market for smartphones, with handset shipments reaching more than 300,000 units per month, Wu said, adding that it is a necessary move for the company to increase local production.

The PC maker last quarter beat Chinese smartphone vendor Oppo Mobile Telecommunications Corp (歐珀移動) in the Indonesian smartphone market, securing the fifth-largest position in the market with an 8.8 percent share, according to market researcher Counterpoint.

Asustek chief executive officer Jerry Shen (沈振來) last month told reporters that the company aims to ship 3 million to 4 million handsets in Indonesia this year and aims to sell 5 million smartphones in that nation next year.

“We aim to have a 15 percent share of the Indonesian smartphone market next year,” Shen said.

As part of the efforts to achieve the sales goal and reduce tariff costs, Asustek is in talks with contract handset maker Arima Communication Corp (華冠通訊) to make the ZenFone models at Arima’s plant in Indonesia, a source at Asustek who is familiar with the matter told the Taipei Times.

“We have contacted Arima, but the details have not been finalized,” the source said.

Asustek’s peer Acer Inc (宏碁), which took the 10th spot in the Indonesian smartphone market, has also partnered with an Indonesian equipment manufacturing services (EMS) provider to make its smartphone products, Acer smartphone business group president S.T. Liew (劉思泰) said.

The company is to unveil the details of an agreement between the firm and an Indonesian EMS provider this month or next month, Liew told reporters on the sidelines of IFA Berlin.

HTC Corp (宏達電) is reportedly in talks with Arima to make smartphones in Indonesia.

When asked if HTC is looking to partner with Indonesian manufacturers to produce handsets there, the company said: “We do not confirm or deny this possibility at the moment.”

Asustek shares rose 1.03 percent to NT$294 in Taipei trading yesterday, while HTC’s stock price surged 6.52 percent to NT$63.7. Acer shares dropped 1.07 percent to close at NT$13.85.

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