Tencent Technology, ASUS, a Taiwanese PC manufacturer, was once one of the few brands in China's consumer electronics industry to succeed globally. However, with the dramatic changes in the PC market, Asus is facing a serious crisis. According to the latest reports from Taiwan and foreign media, ASUS's operating income and computer sales have both experienced double-digit plunge, with computer sales falling the first.
According to the Taiwan Electronic Times website, ASUS, which is listed on the Taiwan Stock Exchange, recently released its September business data. In September, ASUS received a total of NT$40.2 billion in NT$1,800 million. This figure is 19% higher than in August, but it has dropped 11% compared with the same period last year.
In the third quarter, ASUS's operating income was NT$102.7 billion, an increase of 14% from the second quarter, but a 10% drop from the third quarter of last year.
In the face of a serious year-on-year decline, ASUS said that the main reason is that there have been some changes in global trade, and the depreciation of currency exchange rates in other emerging market countries has affected the performance of computer companies.
According to reports, the release time of some new products of Asus has been postponed, so the company predicts that there will be some difficulties in the second half of the year.
According to a recent report by the Electronic Times website, ASUS is continuing its ongoing layoffs and restructuring plans, which are preparing to split the smartphone business into an independent company. In addition, in September, Asus has cut about a hundred jobs.
Personal computers have long been a sunset industry, and the global PC industry has collectively initiated transformations, such as Dell's delisting and offensive corporate IT services market, and Hewlett-Packard has also made a big break. Asustek previously used smartphones as a key point of transformation, but lost the best time to enter and performed poorly.
In the past five years, smart phone brands such as Xiaomi and OPPO from mainland China have used cost-effective weapons globally to attack the city. In contrast, ASUS, which has entered the mobile phone market, is not competitive enough. It did not achieve its mobile phone sales target last year.
In addition to mobile phones, a new direction for ASUS's transformation is the game business and game hardware, but it is reported that a large part of Asus's layoffs includes games.
Recently, well-known market research company Gartner released the global PC market report for the third quarter. According to the report, sales of Asustek Computer plunged 15.9%, ranking first among the top six computer manufacturers in the world.
According to the Gartner report, ASUS sold more than 4 million computers in the third quarter, and its global share has dropped from 7.1% in the third quarter of last year to 6%. Among the top six manufacturers, ASUS's share is not even as good as Taiwan's Acer, which has been led by ASUS in the past.
The global PC has formed two major groups with obvious boundaries. Lenovo, Hewlett-Packard and Dell have controlled 60% of the shares and formed the first group. The second group includes Apple, Acer and Asus. The sum of the market shares of the three companies of the second group is only equivalent to one company of the first group.
According to the Gartner report, unlike the growth of the first group, the sales of the three companies in the second group all fell, but Apple and Acer declined far less than Asus.
According to industry sources in Taiwan's Electronic Times, ASUS has taken countermeasures to improve product competitiveness and business operation efficiency, but ASUS's financial data may not be significantly improved until these new policies are received.
Faced with the continued concentration of the global computer market and the weak performance of the two Taiwanese brands, there is a voice in the industry that Acer and Asus should merge their PC business to enhance the competitiveness of the Group. (integrated / dawn)