A SUSTEK Computer (Thailand), the local operating unit of Taiwanese PC maker Asus, is aiming to boost its smartphone sales to make mobile handsets the core of its revenue engine.
The company is also seeking out robotics and Internet of Things-based devices that could become new growth engines to offset declining computer sales.
“We aim to drive our smartphone sales revenue to surpass computer sales revenue within the next three years,” said Eric Chen, corporate vice-president of Asus.
Although the global smartphone market growth cycle has reached maturity, Chen said the growth of worldwide smartphone shipments reached 1.4 billion units in 2015—five times higher than global computer sales of 300 million units last year.
He said computer revenue accounted for 70 percent of Asus’s total income last year, with smartphones making up 15 percent.
Chen said Asus is investing in its smartphone research and development (R&D) infrastructure to enhance its innovation and design capabilities.
“We’re positioning ourselves as a premium lifestyle brand, rather than a tech-savvy brand,” he said.
Chen said Asus has allocated 80 percent of its marketing budget to operating units in Indonesia, Vietnam, Thailand and Malaysia to promote its smartphone brand in the high-growth region.
“We rank No.2 among smartphone vendors with an 11- percent market share in Asean after boosting our presence in the region the last two years,” he said.
Jeff Lo, the country manager of Asustek Computer (Thailand), said it aims to double its smartphone market share in Thailand to 10 percent this year, moving it into the top 3 handset vendors locally.
Asus recently appointed actress Praya Lundberg as a brand ambassador to reflect its position as a premium lifestyle brand.
The company rolled out its third smartphone series, Zenfone 3, priced from 11,990 to 28,990 baht.
“We’re focusing on mobile phones with prices ranging from 10,000 to 20,000 baht, a segment that accounts for 20 percent of local smartphone sales,” he said.
Sales of smartphones in Thailand are projected to have single-digit growth to 14 million units this year, thanks to intense competition in the 4G wireless broadband market.
Chen said Thais now use computers longer than before—an average of six years—compared with three to four previously. Computer sales in Thailand reached 2.5 million units in 2015, compared with 8 million to 9 million in 2010.
Globally, Asustek reported consolidated revenue of $14 billion in 2015. Some 3 percent of annual revenue is slated for R&D investment.