Asus 2014 Annual Report Download - page 81

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with in-depth services in order to provide the most comprehensive solutions for
smartphones, laptops, desktops (including all-in-ones), tablets, home servers, storage
equipment, and communication products. The full range of solutions will allow
users to fully enjoy the convenience of ASUS cloud computing on a wide range of
devices.
4. Competition:
Laptop computer shipments are slowing down across markets. Though some
competitors have withdrawn from the market, the laptop market continues to be
highly competitive. Product design remains important, with emphasis on
personalized design to stimulate consumer demand. Manufacturers continue to
emphasize product differentiation and segmentation to target consumers. Likewise,
marketing strategy is an important factor in driving profit.
As part of its competitive strategy, ASUS will continue to integrate new technology
to increase product value. The company will also continue to emphasize its strengths
in design by creating compact, thin, highly portable devices that are energy efficient
and environmentally friendly.
MB, VGA, and CD-ROM are key segments of the computer components industry, as
part of the supply chain that includes CPUs, chips, and PCB connectors. ASUS
maintains close strategic partnerships with external suppliers while also maintaining
subsidiaries to ensure the manufacture of critical components.
The Company cooperates closely with more than 300 dealers and more than 20,000
distributors, worldwide.
ASUS is ranked the number one brand in regions throughout Europe, Asia and in the
Americas.
(III) Research and Development
ASUS has been committed to R&D excellence since the day of its incorporation. The
company relies on a world-class in-house team for innovation, production, and for
marketing of advanced motherboards, graphics cards, laptops, tablets, servers and
smartphones; and to develop 4C (computers, communications, consumer electronics, and
automobile electronics) integrated products. In 2003, ASUS established a specialized
ATEC R&D division dedicated to developing key technologies in broadband wireless
communication, wired / wireless network switches, and optical data storage.
Two groups comprise the R&D component of the company.
The R&D Center focuses on technology research and commercialization of creativity.
The R&D Center is entrusted with the responsibility of conducting preliminary studies
and assessments regarding key software and hardware technology, modules, and applied
program development platforms. This work provides reference for the R&D director, for
determining technology trends and for identifying and selecting partners.
The R&D Division focuses on system integration, product introduction, and
commercialization.
As income is generated from product sales, money is contributed back into the R&D
programs. This cycle helps to continuously build on R&D efforts, and incentive programs
allow teams to continuously recruit the best R&D talent.
ASUS invested NT$7.42 billion in 2014 for R&D; consolidated R&D expense for 2014
was NT$11.37 billion. The R&D budget in 2015 is NT$11~12 billion.