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June 29, 2017

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Asustek sees revenue from mobile devices surpassing PC sales by 2017

TAIPEI, Taiwan -- Taiwan's Asustek Computer Inc. (華碩科技) said yesterday that the company's mobile business revenue would likely exceed revenue from personal computer sales by 2017 as it works to transform itself into a mobile company.

Asustek Chairman Jonney Shih (施崇棠) said at an annual meeting with shareholders that Asustek continues to lead the industry with better products developed through the efforts of Asustek employees.

"Due to the converging competition in computers, tablets, and mobile phones, however, we need better product value, greater scale of operations, and more effective marketing and communications to enter the three-in-one battlefield," Shih said.

In terms of product management, Asustek will try to refine its PC-related operations, including expanding its brand advantage and the economic scale of its motherboards, notebook computers, and desktop computers, Shih said.

Asustek will also focus on the development of the smartphone business in 2014 and intends to strengthen its product innovation, marketing, and channel partners to lay the groundwork for long-term growth of the mobile phone business, Shih said.

As a result, Shih predicted that Asustek's revenue generated from its mobile business — including smartphones and tablets — would likely surpass revenue from PC products by 2017.

In addition to maintaining its product leadership in 2014, Asustek will also focus on "marketing" and "quality" in 2014 and invest in the two areas over the long term to drive future growth, the chairman said.

To strengthen its marketing, Asustek will try to communicate more effectively with consumers through more diversified channels and flexible approaches, he said.

Asustek's 2013 consolidated revenue was NT$463.3 billion (US$15.4 billion), up 3 percent from 2012. But the company's net income fell 5 percent from 2012 to NT$21.4 billion.

The Taipei-based company told investors in early May that it hoped to ship 5 million to 10 million smartphones this year before doubling shipments in 2015 and again in 2016.

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