Asus 2011 Annual Report Download - page 5

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I. Letter to Shareholders
First of all, I would like to thank you for your continuing support to ASUS. Subject to the nearing
saturation and economic downturn for the European and American computer markets which lead
to the reduction in consumer expenditures and the rise of tablet PC, the global computer market
growth rate continued to decline in 2011. Ultrabook featuring ultra-slim body is bringing the
hope of growth in the laptop computer industry. Nonetheless, due to higher initial cost, the
overall laptop computer demand has been suppressed. Asian, South America and emerging
markets from other regions are in stark contrast to the European and American market with
observations of continuous growth in shipments. The tablet PC market continues to grow
substantially with major appeals in “light, thin, short, and compact.＂ Due to a high demand for
information in life, consumers need to browse the websites, receive email, search for data, and
share information at all time. Moreover, the leisure, entertainment and gaming functions are
turning tablet PC into another main tool for information, browsing and entertainment, following
the footsteps of laptop computers and SMART phones. Under this industry situation, the
turnover of ASUS headquarters was NTD317.7 Billion, profit before tax was NTD19.795 Billion,
and the net income was NTD16.578 Billion for 2011, a growth rate of 1% as compared with
2010. The computer brands of ASUS were consolidated in 2011 (the Company＇s Financial
Report) and the turnover reached NTD350.5 Billion, a growth rate of 9% as compared with 2010.
The consolidated net income was NTD16.578 Billion and although with a mere 1% growth rate
in net income, the profits related to the main business line have in fact increased from
NTD13.641 Billion to 17.830 Billion, a significant growth rate of 31% as compared with 2010.
ASUS is highly recognized on an international level, for its innovation and Koreyoshi. In 2011
alone, ASUS products have been awarded with 3,886 internationally renowned awards from
worldwide, receiving in average of 10.6 international awards daily. These honors best exhibit the
“brilliant innovation, perfect quality＂ implemented by ASUS employees and at the same time
serve as the best proofs for the superiority and quality assurance of ASUS products. Additionally,
ASUS has been ranked at the top 3 of the 2011 Taiwan Global Brand Value Survey organized by
Interbrand and sponsored by Bureau of Foreign Trade, Ministry of Economic Affairs, for the
ninth consecutive year with a high growth rate of 27.4%. The brand valued at USD1.638 Billion.
ASUS is creating a number of popular products through its design thinking and is in constant
pursuit of ultimate fashion and beauty. ASUS not only appeals with fashion in product
appearance but also includes attentive design of user experience that puts products back to user
orientation. The unparalleled user experience plus the aesthetically stunning craft are making
inroads to the consumer market vigorously.
This year in CES, ASUS was a huge hit in one fell swoop to have won six CES Product
Innovation Awards in the wireless handheld, four areas of personal electronic products, audio
equipment, computer hardware and parts. In particular, Padphone won the wireless handheld
product category in Best Innovation Award. Padphone integrated the two most popular products,
namely the SMART phone and the tablet PC, with which the consumers can easily switch
between mobile phone and PC for any occasions and events, depending on the required size of
monitors. The battery run-time can also be extended via the power of tablet PC. Meanwhile, the
mobile phone also provides 3G mobile internet for tablet PC, to share exciting digital content.
The advantage of dual function as SMART phone and tablet PC in one Padfone is bringing
consumers with more flexibility and brand-new mobile experience.
ASUS won the 2012 iF Gold Award from Germany in February with its exquisite design in