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ASUS: The New Taiwanese Smartphone Tycoon

By Korbin Lan
Published: Aug 24,2015

TAIPEI, Taiwan - HTC might collapse, but this does not mean that Taiwan's smartphone industry also followed down. Instead, another new gaint has stood up. It is Asus, only second to Apple in market share in Taiwan of about 25%, its monthly shipments reached 0.2 million units, more than the Samsung and HTC.

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The growth rate of global smartphone shipments is rapidly slowing, but that does not prevent ASUS from growing. The company’s average shipment growth rate was over 400 percent in this three years, it was the world's the most amazing number in the global smartphone manufacturers. ASUS projects its shipment of 17 million units in 2015, which is also the best record in the company’s history.

As a follower in the smartphone market, ASUS fully uses the advantages of latecomers, which are low R&D and manufacturing costs, plus with the correct market segment and sales targeting. ASUS does not enter the expensive high-end market, mainly in developing low-cost smartphones, but the performance of its low-cost phones overpower challengers, and that is mostly customers want now.

On the other hand, Asus does not eye on mature markets (US and Europe), but makes its best in the emerging countries, such as India, Brazil and Indonesia. This allows ASUS to have more space to grow.

The company’s success is not for no reason, it learns from the failures. Four years ago, the company was very struggle in the smartphones market. They had cooperated with Garmin, a navigation technology provider, in 2009, they jointly introduced a Windows-based navigation phone- Garmin-Asus M20. But one year later, they announced fails, and decided to temporarily withdraw from the smartphones market.

Then after two years of preparation, Asus launched its Padfone in 2011, returned to the smartphones market. And now, ASUS stands on its historic high.

Though it is still too early to determine whether Asus can get a place in the global smart phone market, but there is no doubt that the influence of ASUS on the Taiwan market is very convincing. With activating the cooperation with the Foxconn in India, ASUS’ visibility in India is going to increase, which will become an important boost of the company in the global market.

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