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Asustek Vows to Target Mainstream Notebook Segment in the U.S.

Category: Mobile

by Anton Shilov

[ 01/14/2008 | 10:35 AM ]

An executive of Asustek Computer said at the Consumer Electronics Show that the leading maker of computer components and laptops plans to focus on sales of mainstream notebooks in the USA this year. The shift from high-end mobile computers to more affordable machines will allow Asus to get market share and increase its revenues, though, its profit margin will be sacrificed.

Asustek has been concentrating on sales of higher-end mobile computers in the USA during the most recent years and now average selling price of an Asus-branded laptop is $1400, meaning that the company sells quite a lot of rather expensive computers. This year Asustek Computer will focus on extending its presence in the segment of notebooks that cost $1000 - $1500, said YC Hsu, U.S. channel business unit general manager, in an interview with DigiTimes web-site. The aggressive plan is projected to lower revenue by about $200.

At present Asustek sells 70% of its notebooks in the consumer market segment and only 30% are sold to business customers. Asustek did not reveal whether it plans to increase sales of consumer- or business-oriented notebooks, but noted that it intends to improve its relations with retail chains, which aim their products on primarily on the consumers.

Asustek’s Eee PC, which are targeted at consumers who do not want to spend a lot of money on a notebook, that are sold at $299, $349 and $399 price-points have become truly popular among the U.S. consumers. Therefore, to keep its ASP at over $1000 level Asustek Computer will have to boost sales of much more expensive laptops considerably, which automatically drives its market share up.