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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.

Discussion

Comments currently: 2
Discussion started: 01/14/08 06:21:48 PM
Latest comment: 01/19/08 01:07:54 PM

[1-2]

1. 
Want to femous and make profit? Just make sure every laptop Asus build has 7200 rpm HDD / SSD and VGA that at lest score 5000 on 3d mark 2006. Beside that asus ones has femous for make laptop with 17" screen as light as 15". If they use this to make their 15" to as light as 13", I think they will event more femous.
[Posted by: Hok  | Date: 01/14/08 06:21:48 PM]

2. 
Other entrants in the low-cost laptop field are:

HCL Mi Leap X (India)

Everex Cloudbook

Asus Eee $299

e-Way Technology Systems Corp. (Taiwan) $150

Look for MANY no-name brands to be sold at Walgreens, Big Lots, etc., for $100 or so.

These should have half the market by 2010.

[Posted by: Clayton Hallmark  | Date: 01/19/08 01:07:54 PM]

[1-2]

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