Asus 2008 Annual Report Download - page 64

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the worlds is collaborating with Taiwanese manufacturers entirely or partially; therefore,
Taiwan is the largest production base for NB. The prevailing rate of NB is high worldwide.
NB had outperformed desktop computer in sales 2008Q3 and becomes the main-stream
product of personal computer. ASUS has been in NB business for over eleven years and
with great accomplishment in product quality, R&D technology, and sales to show for.
According to the survey of IDC, the NB of ASUS is on the Top-5 list worldwide in the Q4
of 2008. ASUS is targeting on hitting the mark of 118.6% growth for NB this year and
realizing the high market share and “33 Plan,” and making it to the Top-3 list in three years.
(3) Short-term development of IT industry;
The trend of industrial change can be observed from the report of IDC or DataQuest,
international data analysis services, that is, rapid annual growth of consumer electronics in
both consumption volume and amount. For IT businesses, entering the market of consumer
electronics is not that difficult and does not take much effort technologically. The broad
applications of digital signals are beneficial to IT industry. At the Computex in June 2007,
the viewpoint on Low Cost PC was mentioned in Intel Forum; also, Mr. Jonney Shih, the
Chairman of ASUS, was invited to demonstrate Eee PC to welcome the era of the “Low
Cost PC” and the arrival of Low Cost PC, UMPC, and MID that are with 7” screen. A great
impact on IT industry is expected. Mr. Sean Maloney, the Executive V.P. and Marketing &
Sales Director of Intel, said “Low Cost PC market is with great potential since it can be
exported to the under-developed nations and it can be the second computer of each user in
the developed nations.”
ASUS has Eee PC 700 market launched in October 2007 and it has become the first
economy computer in the world and has attracted a great attention in market. Media called
it “Eee Wave” for one Eee was sold every five seconds. Eee PC is with good price,
cosmetic design, quality industrial design, light weight, shock prove, and easy interface.
ASUS has managed to have 8.9”-screen and power-recharge-free-for-a-day Eee PC 901
market launched in April 2008. ASUS had the thinnest Eee PC S101 market launched in
October 2008 to develop a new market segment for Eee PC. It is the intention of ASUS to
bring consumers more Eee series with the concepts of Easy, Exciting, and Economic.
3. Business goals
ASUS’ s strategic planning and the trend of market development has been a good
match in recent years. ASUS’ s consolidated operating income of over US$8.1 billion in
2008 representing 17% growth from the year of 2007. The said operating income did
evidence the correct brand strategies. ASUS will continue to focus on the core business this
year and will also develop diversified operation carefully. The sales of ASUS’ s new
products are growing by multiples. ASUS will base on the stable operating principle of
profundity and practicality to provide customers with the first-class technological
innovation and fine products. !
4. Competitiveness, advantages and disadvantages of development, and responsive
strategies
Industrial development and vision
(1) Advantages
a. Intel’ s promoting the energy-saving platform of CULV and Microsoft introduces
the Windows 7 processing system has helped bring IT industry new business