Asustek leading the way despite drop in revenue

MARKET APPEAL::With steady annual revenue growth, appealing products and a strong strategy, analysts said other local firms should look to Asustek as an example

By Helen Ku  /  Staff reporter

Fri, Jan 11, 2013 - Page 13

Asustek Computer Inc (華碩電腦), the world’s No. 5 PC vendor, yesterday said its unaudited standalone revenue decreased by 23.1 percent month-on-month to NT$30.47 billion (US$1.05 billion) due mainly to weak demand during the slow season, but expects sales to pick up in March as demand from the Chinese market enters its boom season.

On an annual basis, Asustek’s revenue for last month increased by 24.15 percent from NT$24.55 billion in the same period of 2011.

For the whole of last year, Asustek’s revenue grew 18.08 percent to NT$375.12 billion, compared with NT$317.67 billion in 2011.

Asustek’s revenue decrease was because of a high comparison base, Hua Nan Securities Investment Management Co (華南投顧) assistant vice president Green Wu (吳積霖) said by telephone.

“Despite Asustek posting a decline in sales last month, it still achieved nearly 20 percent growth last year, proving that its products appeal to the market and that the company has the correct product strategy,” Wu said.

Meanwhile, Acer Inc (宏碁), the world’s No. 4 PC brand, yesterday said last month’s revenue expanded 20.78 percent to NT$29.41 billion, from November’s NT$24.35 billion.

However, the figure represents a 10.95 percent decrease compared with NT$33.03 billion for the same period a year ago.

For the whole of last year, Acer posted NT$359.89 billion in sales, down 11.3 percent compared with NT$405.71 billion in 2011.

“Acer needs to look to Asustek to improve its product design in order to grab back market share and sales,” Wu said.

He added that although Acer rolled out a new budget tablet priced at US$149 to take on Asustek and Google Inc’s Nexus 7 tablet, the product is not as feature-rich as the Nexus 7 and is obviously targeted at buyers from emerging markets.

“Acer set an attractive price for its new product, but it still needs to improve its design skills to catch up with Asustek,” Wu said.

“Acer’s product strategy is correct from the perspective that tablets are likely to replace notebooks in the future. However, Acer needs to diversify and expand its product portfolio so that customers have more options. A pure budget tablet is not enough,” Wu said.