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

Slump: Wang

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

Fu­ture: Shih

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.”

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