Welcome to a laptop battery specialist of the Asus Ac Adapter
Last year, Asus introduced VivoBook an 11.6-inch laptop with a touch display, with prices starting at 499. For the same price as Microsoft’s Surface tablet, “You get a real PC and a real (processor),” Yang of Barclays says. He estimates Asus will occupy about 20% of the global market share for touch notebooks by the end of this year.
Last week, Asus announced its VivoTab series, a line of 10-inch tablets that will come with a faster processor ideal for viewing HD movies, an optional keyboard and running on Windows 8 and Windows RT, a new Microsoft operating system for mobile devices. “(U.S.) retailers’ shelf-space is limited. Product differentiation plays a very important role,” says Steve Chang, president of Asus North America. “You can’t have many me-too products.”
Competition, of course, will remain stiff. The Android market with battery like Asus V1 Ac Adapter, Asus V6V Ac Adapter, Asus W1N Ac Adapter, Asus W2 Ac Adapter, Asus W3 Ac Adapter, Asus W5 Ac Adapter, Asus W5F Ac Adapter, Asus Z32 Ac Adapter, Asus Z33 Ac Adapter, Asus W3N Ac Adapter, Asus W2J Ac Adapter, Asus W2Pc Ac Adapter is already facing a glut. And tablets will not prove to be a lasting source for profit, NPD’s Baker says. As popular as Nexus 7 is, it barely makes money for Asus given its prices that start at $199, he says.
“Tablets with a keyboard — that’s a good way to go. But it’s not unique for them,” Baker says. “(Other than for) Apple and Amazon, there’s not much breathing room. This is not an indictment on them. But no one’s been able to compete with them.”
Smartphones are another area of expansion in the works for the U.S. market. Asus is in talks with U.S. carriers to launch its PadFone, a smartphone that can be docked to a tablet. That, too, could be an uphill battle, given the stringent terms U.S. wireless carriers’ demand from phone makers. “Who’s going to buy an Asus phone in the U.S.?” asks Barclays’ Yang. “It’s too competitive in the U.S.”
Asus also must contend with the declining market for PCs, which deliver bigger profit margins than tablets and have been its cash cow for several years. Global PC shipments fell 8.6% in the third quarter of 2012, and the decline is expected to continue for the next few years. While Asus grew 45% in the U.S. in 2012 by grabbing rivals’ business, “The market shift is not going to last forever,” Yang says.
“It may be good for (Asus) for two or three years,” Yang says. “It’s an easy way to grow. They’ll have to grow other businesses — ones with recurring revenues, like cloud computing, software, storage and (enterprise) services. They need some longer vision and to take even more risk.”
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