Asus Eyeing Mass Market in Indonesia for Its Smartphones



Jakarta. Taipei-based ASUSTeK Computer, one of the biggest producers of notebooks and motherboards, has released its Intel-based ZenFone smartphones to Indonesia, betting that consumers will seek alternatives to popular brands such as Samsung and Sony.
“We are pleased to bring this device into Southeast Asia. We believe the best technology is the one used by the masses. When we began our journey ‘in search of incredible’ [products] we came up with this handset with the hopes it can be enjoyed by many,” company chairman Jonney Shih said in a press gathering on Tuesday.
Shih was accompanied by Asus chief executive Jerry Shen as he explained the company’s plan to focus more on smartphones over laptops and desktops starting this year. Shih said the Indonesian market is full of potential for products aimed at targeting the mass market segment.
“Indonesia is a great market. The population is huge. Our products have performed quite well,” said Shih, who is often dubbed as one of the most influential people in technology.
ZenFone, powered by the Intel Atom processor, comes in three series for Indonesian consumers: the 10-centimeter, ZenFone 4 tagged at Rp 1 million ($87); the 12.7-centimeter ZenFone 5 for Rp 2 million; and the 15-centimeter ZenFone 6 for Rp 3 million.
The company, commonly referred to its computer brand Asus, experienced a financial downturn in its third-quarter 2013 financial results when profit dropped 26 percent to NT$4.94 billion ($164 million) from the year before.
Meanwhile, revenue declined by 4 percent to NT$107.1 billion. The profit slump was mainly attributed to taxes, of which Asus was required to pay NT$1.52 billion.
Despite its staggering tax bill the company, which was also responsible for the hardware behind Google’s Nexus 7 tablet, is keen to roll out a line of smartphone products into markets worldwide and boost its smartphone shipments.
Based on third-quarter financial results, notebooks and laptops represented 57 percent of Asus’s product portfolio, with tablets making up 20 percent, while 13 percent was made up by motherboards and cards (including video and sound cards).
“We introduced the Eee PC for the mainstream US market, which was a success. We aim to achieve the same for ZenFone,” Shih said.
Shih was the executive behind the Eee PC’s positive reception. Asus was the first PC maker to bring the lightweight netbook, the Eee PC, into the United States in 2007.
Asia-Pacific region made up 43 percent of Asus’s business, with 30 percent in Europe and 20 percent in the United States.
According to data from the International Data Corporation, a total of 11 million smartphones were shipped to Indonesia last year, a bulk of which used the Android operating system. In its latest venture into the smartphone sector, Asus will face a slew of Android-based competitors, including Samsung, Sony and Lenovo.
 
By Muhamad Al Azhari TheJakartaGlobe.com