Asustek pondering acquisition of HTC HTC boss says problems lie with marketing, not products
Asustek Computer Inc. ) Chairman Jonney Shih ( ) announced yesterday at the company’s annual general shareholders’ meeting, that they will not rule out the possibility of acquiring HTC Corp. ( ), and they are currently holding unofficial discussions within the company.
Shih proposed that Asustek will still require further assessment of
( the acquirement, and whether it is a possible strategic move. Asustek will continue to mull over brand positioning, among other problems, the chairman said, and decide upon the overall synergy of both brands.
Furthermore, Shih also believes that HTC officials will be devising their own tactics to address the problems that have burdened the cellphone company as of late. He expressed his optimism in HTC’s will to make the best possible choice for not only itself, but also in consideration of Taiwanese brand development.
Many Taiwanese company leaders conveyed their encouragement of HTC yesterday, as the wellknown brand had forecast a weak performance in the second quarter.
MediaTek Inc. ( ) Chairman Tsai Ming-kai ( ) pointed out that they not only view HTC as an important client, but also an equally essential brand in Taiwan, and expressed words of encouragement.
HTC’s recent slump is unfortunate, but there is still a chance for improvements and to stage a comeback, TECO Group ( ) Chairman Theodore Huang ) said. Shih, commenting on the heavyweight corporate merging and acquisitions in the semiconductor industry recently, believes that Taiwan’s small and medium-sized enterprises’ choice to merge with other companies could become a lifeline and that merging “isn’t necessarily a bad thing.”
Taiwan Institute of Economic Research (TIER) Macroeconomic Forecasting Center Director Gordon Sun ( ) said that as Taiwan’s cellphone industry is quite competitive and HTC lacks sufficient resources to stand out, it could consider creating a “synergy” with other companies, rather than attempting to “save itself behind closed doors.”
“HTC should make its decision while its brand is still rel-
evant,” Sun said.
Marketing Is the Crux of HTC
In a recent letter to her employees, HTC Chairwoman Cher Wang ( ) said the problem with the company’s poor performance lies in its marketing rather than its products, and proposed that they will quickly be able to push forward a new operational strategy to turn the tables.
Wang also suggested that the company will attempt crossindustry collaboration in the letter, saying that in future developments, HTC will make its foray into sectors other than the smartphone market, such as virtual reality technology, health care services and product development.
Robots in Asustek
In other news, during the shareholders’ meeting, Shih also stated that Asustek is aiming to pave a way into the smart- robotics industry by integrating cloud computing technology as Taiwan is becoming a more aged society and such developments can create educational tools for children as well.
Asustek Chief Executive Officer Jerry Shen ( ) stated that the company will aim for higher sales in the cellphone sector in the second half of the year.
Asustek Computer Inc. ( ) Chairman Jonney Shih ( ), right, speaks at the company’s general shareholders’ meeting, yesterday. Shih fielded questions from minor shareholders. In response to the media’s questions on whether Asustek will acquire HTC Corp. ( ), Shih said “they will not rule out the possibility.”