Asustek Computer Inc (
To sustain profitability amid falling profit margins in making personal computers, Asustek plans to roll out its second cellphone model. The new model is a "smart phone" which combines the functions of a handset with those of a personal digital assistant, Asustek chairman Johnny Shih (
"We believe this area [consumer electronics] is very important in the future as it's a trend which is already happening to live a digital life," Shih told the Taipei Times on the sideline of an industry forum arranged by Monte Jade Science & Technology Association (
"Our new products will surprise local consumers. They are fancy in style. Female consumers will like them," he said.
Asustek's moves to gain a bigger role in the global consumer-electronics market is turning aggressive this year after rolling out the company's first brand-name clamshell handset and a "barebones" desktop PC system, which can be used to get on the Internet and other entertainment functions, during Computex Taipei last month.
In addition to producing handsets and PDAs, Asustek also assembles game consoles for Microsoft Corp.
Sharing a similar strategy with its local competitors, such as laptop giant Compal Electronics Inc (
"It's an choice Asustek has to make to sustain profitability, as the PC sector has become a mature industry with scant room for future growth," said Leon Chen (
Asustek is a late entrant in the consumer electronics business, but "it is on the right track," Chen said. "How consumers react to its new products will be a deciding factor for its long-term development."
Asustek generates most of its revenue from motherboards and notebook computer businesses, which account for about 40 percent and 34 percent of its total revenue, respectively.
"[The anticipated boom in] consumer electronics, or digital home appliances, gives IT hardware providers at home and abroad a good opportunity to regain growth-strength," said Grace Chen (
After US computer giant Dell Inc and Hewlett-Packard Co announced they would tap into the digital consumer-electronics sector to produce flat-screen televisions, digital cameras and MP3 players, Taiwanese IT companies also followed suit, with Asustek being the latest example, Chen added.
Quanta Computer Inc (
Chen believes the introduction of Asustek-brand handsets to the local market is just a way to demonstrate the company's manufacturing capability to global handset vendors.
"Asustek may attempt to lure ODM orders from international brand-name handset vendors because Taiwan's market is small," he said.
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