Asustek Computer Inc (華碩), the world’s fourth-largest PC vendor by shipments, yesterday said it plans to form a new gaming PC business unit later this month as part of the company’s latest restructuring efforts to fend off competition and to rekindle growth.
The company unveiled the plan in March to revamp its product portfolios and reallocate company resources, as its growth has been decelerating over the past two years.
The notebook maker did not reveal a detailed timeline at the time.
Photo: CNA
“All high-ranking executives have felt the industrial headwinds,” Asustek chairman Jonney Shih (施崇棠) told reporters on the sidelines of the company’s annual shareholders’ meeting in Taipei. “The company hopes to fend off challengers through restructuring efforts.”
Shih said the company’s financial performance would reach its lowest point in the second quarter due to slow demand for smartphones and PCs amid product transition.
To fuel growth, Asustek should allocate more resources to develop gaming PCs, taking advantage of the industrial trend, Shih said.
Gaming PCs is becoming a mainstream segment in the PC industry, he said.
“Micro-Star International Co (微星科技) is catching up, as it puts the whole company’s resources into gaming PCs,” Shih said. “Our goal is to widen the company’s lead like we have achieved in the motherboard segment.”
Asustek is to spin off the gaming PC segment from the lukewarm PC business unit.
Upon completion of the restructuring, its system business group would be comprised of three units — a PC unit, a mobile phone unit and a gaming unit.
Asustek also plans to expand to new areas for growth, including the Zenbo service robot series.
The company expects shipments of Zenbo robots to rise significantly in the second half, following its debut early this year, Shih said.
Asustek plans to expand its Zenbo’s target markets to Chinese-speaking areas, primarily China, by the end of September and to English-speaking countries such as the US next year, Shih said.
Zenbo plays a key role in the firm’s long-term plan to build a cloud-computing ecosystem, Shih said.
It enters consumers’ homes and connects to all Asustek’s products, making it the center of “smart home” solutions, he said.
Asustek shareholders yesterday approved distribution of a cash dividend of NT$17 per common share based on the company’s net profit of NT$19.2 billion (US$638 million) last year, or earnings per share of NT$25.9.
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