Asus aims to capture 5% of commercial PC market in a year from launch

NEW DELHI: Taiwanese electronics brand Asus which is set to debut in India’s commercial PC market this month, is aiming to capture 5% market share within a year of launch and is looking to invest aggressively in product development, marketing, retail and back-end service infrastructure.

Asus’s business head for smartphones in India Dinesh Sharma, who has been appointed to lead the commercial PC operations as well, told ET, that the company is looking at hiring in big numbers to expand the newly formed vertical.

“We will be launching a range of products, notebooks, desktops, all in ones and mobile workstations for micro businesses, SMBs and large enterprise customers, between the 8th-25th of this month and investing heavily to expand the vertical,” Sharma said.

Asus will also offer value-added services for enterprises such as warranty extension, accidental damage protection, hard disk retention service, and priority service, he said.

“We are actually number one in the consumer PC segment in most of the countries….Southeast Asia, Europe, Canada. We are in the top three across the world and now in India also in the last quarter, which is Q2 2020, we become the top three brands in the consumer PC with more than 16% market share,” Sharma said.

Asus’s Sharma added that after achieving this milestone in the consumer PC market, the brand now wants to foray into the commercial PC business, which also happens to be the right time given that demand for electronics is soaring due to the pandemic.

“We are in a demand surplus situation and a supply shortage situation. So from an entry perspective, the timing, although not planned this way, but the point is that it’s a good time.”

Industry analysts are optimistic about Asus’s debut which will help the brand to grow its presence in the overall PC market. Though overall PC shipments fell 37% to 2.4 million units in the bygone quarter, analysts are optimistic about the growth in the second half of this year.

“On-year comparison for the PC market could be somewhat misleading because 2019 has been an unusually high selling period due to some mega deals. However, India’s education and SMB segments are still underpenetrated and expected to provide new growth opportunities in the coming years. Hence, it is a viable choice for Asus to foray into the commercial segment to expand its business in India,” said Jaipal Singh, associate research manager for client devices at IDC India.

When asked about Asus’s strategy to tackle competition with marquee PC brands such as Dell, Lenovo, HP, Apple etc, Sharma said the company has done well in the consumer segment where it competes with the same set of brands globally.

“So, we know how to differentiate ourselves, how to offer superior value to the consumer and appeal to the consumer to take share from these brands. And that’s something that we are going to do in commercial as well.”

Asus, which began assembling its smartphones in India in 2016 via its contract manufacturing partner Foxconn, is on the wait-and-watch mode to bring PC manufacturing as well.

“When it comes to PCs, it’s been a bit different for all brands, not only for us, so what will be the new incentive base ecosystem, how it will shape up, that’s something which is work in progress” Sharma said.

He added that India’s policymakers are taking the right measures slowly wean away manufacturing from China, “but India is also then competing in the current global, let’s say, geopolitical scenario with multiple other countries, in Southeast Asia, you know, who are also very viable alternatives to China.”

Asus aims to capture 5% of commercial PC market in a year from launch Asus aims to capture 5% of commercial PC market in a year from launch Reviewed by TechCO on 9/01/2020 Rating: 5

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