Brief

Expanding line of business

Asus, long known for its motherboards, is shifting focus towards notebooks, LCDs and PDAs. While the company has a substantial presence in the motherboard market it earns a comparatively lower share of its revenue from this segment. According to the company, while it has a grip over 40% of the global market for motherboards, the revenues generated by it amount to only 16%, while notebooks contribute 29%. Tackling the 4Ps of marketing, the product and pricing strategies are in place for this initiative, while the place and promotional aspects are still in their nascent stages.

By next month, the company is all set to launch seven notebook SKUs which will be available at a price of less than Rs. 40,000. Dharmesh Patel, National Channel Manager, Asus India said, “We will target the gamer and the graphics designer segment for our notebooks in addition to focus on the premium and lifestyle segment.” They are also on the verge of introducing rapid response time LCD displays (1 ms).

The company also showcased its upcoming small form factor notebook, the Eee PC, which it plans to introduce in December. This product with built-in applications and be priced at less than Rs. 20,000 targeting students in the age group of 10-20, the so-called ‘young educated market’.

Asus is focusing on selected metros for the launch of its PDA models that will shortly be introduced into the market, to take advantage of the festive season. With prices ranging anywhere between Rs. 19,000 to Rs. 24,000, India Digital Lifestyle Distributors Pvt Ltd (IDL DPL) will be its distribution partner. Users of some of these products will also have an additional option of getting discounted rates from MapKing for navigation software and maps.

The company’s business has been separated into three distinct areas, set towards completion by mid-2008—Unihan Technology Corporation focusing on systems-related manufacturing, Pegatron Technology Corporation that will take care of all the manufacturing operations in the non-PC related segment and Asustek Technology which will be exclusively involved in the marketing activities of the Asus product range. In the wake of restructuring, Asus India’s manufacturing plans have been placed on hold. The company intends to recruit engineers from India who will go to Taiwan for learning operational activities and assist in setting up R&D facilities in India.