Asustek Computer

Asustek Computer is a Taiwanese manufacturer of computers and accessories.

Performance indicators

2023:9% decline in revenue to NT $448 billion due to falling PC sales

In 2023, Asus received revenue of NT $448 billion, or approximately $14.07 billion at the exchange rate as of March 25, 2024. For comparison, a year earlier, the company received 493.47 billion Taiwan dollars. Thus, on an annualized basis, the figure decreased by 9%, as stated in the financial report published on March 16, 2024.

Asus's net profit in fiscal 2023 was recorded at Taiwan $15.93 billion (approximately $0.5 billion). A year earlier, the company made NT $14.69 billion in profits. The growth in this indicator was approximately 8%.

The report notes that at the end of 2023, Asus accounted for about 63% of total sales of personal computers. Another 36% accounted for all kinds of components, while smartphones provided only approximately 1% of deliveries in monetary terms. If we consider the market geographically, then 23% fell on the American region, approximately 32% - on European states and 45% - on Asian countries.

Asus expects that due to the current macroeconomic situation, sales of personal computers in the first quarter of 2024 will decrease by about 10% compared to the previous quarter. At the same time, demand for various components is predicted to grow. In the second half of 2024, an increase in supplies is expected, which should be facilitated by the rapid development of artificial intelligence technologies.

The report also said that revenue from Asus' server division grew by more than 50% in 2023 compared to the previous year, thanks to strong demand for platforms designed to work with artificial intelligence applications. Asus is also developing hybrid cloud and peripheral computing directions.^[1]

2022: Revenue drop 1.4% to NT $493.47 billion, profit 67% to NT $14.69 billion

At the end of 2022, Asus received revenue of NT $493.47 billion (approximately $16.15 billion at the exchange rate as of March 20, 2023). This is 1.4% less than the result for the previous year, when NT $500.4 billion was received. The corresponding figures are given in the financial report published on March 10, 2023.

Asus's net profit in 2022 amounted to NT $14.69 billion (about $0.48 billion). For comparison: a year earlier, the company received NT $44.55 billion in net profit. Thus, a fall of 67% was recorded for this indicator.

The report notes that in 2022, in the total revenue of Asus, personal computers accounted for 67%; on smartphones - approximately 1%. Another 32% brought various components and components. From a geographical point of view, the company's products are most in demand in the Asian region, which provided 47% of sales. The contribution of Europe is estimated at 30%, the American market - at 23%.

In the System Business Group division, Asus revenue in 2022 rose by no more than 5% compared to 2021. The demand for the company's personal computers on an annualized basis decreased by 6%, while the market average fell by 17%. At the same time, sales of Asus gaming laptops rose 8% against average market growth of 1%.

The Asus Open Platform Business Group has shown positive dynamics. The company's share in the motherboard segment in 2022 rose by 5%, and the average price of such solutions increased by 10-15%. In the graphics accelerator sector, the company increased its share by 1% with an increase in average cost by 5-10%. AIoT Business Group's Smart Devices for IoT division posted a 90% year-on-year revenue growth. The company increases research and development costs in this sector.^[2]

2020: Revenue growth by 15%, to NT $382.44 billion, profit - by 119%, to NT $26.56 billion

Asus ended 2020 with NT revenue of $382.44 billion ($13.5 billion) earned at the end of this period, which is 15% more than in 2019. Most of the turnover - 35% - was earned in the Asian market. The second place in sales was taken by Europe (35%), the third - by the countries of the Americas (25%).

The sale of personal computers accounted for 67% of Asus's revenue at the end of 2020. The remaining share of 33% is the supply of components for PCs and other sources of income.

Asus also reports that sales of motherboards and video cards from the company in 2020 increased by about 20%. The vendor demonstrated close to 20% growth rates in the PC market.

The company's management drew attention to the successes in the gaming segment. If in 2017 products aimed at gamers brought Asus revenue in the amount of NT $90 or just over 20% of the total revenue, then in 2020 sales in this category reached NT $150 billion, which corresponded to almost 40% of annual turnover.

Asus gaming laptops are in high demand. In 2020, the company increased the global supply of such laptops by almost 50%. In selected regions, such as Europe and North America, shipments growth reached 67%. In China, shipments of Asus-branded gaming laptops increased by 34%, in the Asia-Pacific region - by 52%.

ASUS also called itself the "number one brand" in the premium Chromebook market (the cost starts at $499). According to the company's own data, its market share in this segment was 35% thanks to models such as the Asus Chromebook C536 and Asus Chromebook Flip CX9.

The net profit of the Taiwanese computer manufacturer in 2020 compared to 2019 increased by 119% and reached NT $26.56 billion ($938 million^[3]

History

2022

Registration of new video cards in the EAEU and re-registration of old ones

By November 2022, the Taiwanese manufacturer of computer equipment and components Asus registered EEU in new video cards and re-registered the old ones. This will help to import goods into a single economic zone and sell them legally in,,, and Russia Belarus. Kazakhstan Armenia Kyrgyzstan

Asus recalls thousands of defective motherboards

At the end of August 2022, Asus, together with the US Consumer Product Safety Commission, announced the recall of 10,000 top-end ROG Maximus Z690 Hero motherboards for Intel LGA1700 processors. The vendor made a difficult decision after ten confirmed cases of overheating or melting of elements on the motherboard, and the first complaints from the owners appeared back in 2021. Read more here.

Plan to stop business in Russia

Asus is going to curtail its business in the very near future. Russia This became known on March 14, 2022 from the words of representatives of the ministry. economies Taiwan

Asus itself has not yet announced its readiness to urgently leave Russia.

In particular, Asus video cards are sold in Russia. Also, as the source reported, the company is one of the five leaders in the Russian PC market - in the IV quarter of 2021.

As of March 14, 2022, it was not reliably known what exactly influenced the decision of the Asus leadership to leave the Russians without its equipment. Perhaps it was adopted for reasons of profitability of the business, but also pressure from the authorities of Taiwan and the United States cannot be ruled out. The latter, for example, banned Taiwan's TSMC, a contract chip manufacturer worldwide, from working with Russian companies. One cannot but take into account the fact that earlier the Minister of Digital Transformation of Ukraine Mikhail Fedorov appealed to Asus to turn away from Russia. The minister sent similar letters to a number of other large IT companies, which did not slow down to respond to them. There is also no data on what will happen with the supply of Asus devices to the Russian market.

Commenting on the imminent departure of Asus from Russia, representatives of the Taiwan Ministry of Economy noted that the company "will generally take care of its business reputation." They also added that Taiwan "supports other democracies" that are known to have been imposed. Russia sanctions Among Taiwan's measures against Russia will be the "evacuation" of its companies from this market. countries

Asus always follows international regulations, and this situation entailed serious problems throughout the supply chain, in logistics and banking services, and led to the fact that deliveries to the Russian market for March 2022 practically froze, Asus [4] representatives told CNews[5].

2019: Revenue decline 6% to NT $332.53 billion

In 2019, Asus raised NT $332.53 billion ($10.98 billion at the exchange rate as of March 30, 2020), which is 6% less than a year earlier. Approximately 71% of sales fell on the sale of personal computers, and the remaining 29% - on the sale of components for them and other products.

As for the regions, Asia remains the largest for the Taiwanese company - there in 2019 Asus received 45% of revenue. Europe accounted for 34% of revenues, the countries of the Americas - 21%.

One of the reasons for the drop in Asus sales is the shortage of Intel processors, due to which the company could not supply computers in accordance with demand.

Asus' net profit at the end of 2019 amounted to NT $12.14 billion ($400.7 million), an increase of 187% compared to profit a year ago. Asus was counting on the disappearance of the shortage of chips by the beginning of 2020, and as an alternative, the company began to use AMD solutions. Samson Hu, one of the company's co-directors, noted that the company could increase the use of Advanced Micro Devices chips.

Asus' mobile division is still unprofitable, but ASUS management considers such results acceptable.

In its financial report, Asus said that in 2019 the company increased shipments of gaming laptops by 20%, while the volume of the entire market for this equipment showed 11% growth.

In the ultra-thin and light laptop segment, Asus increased shipments of equipment by 32%, and sales of such devices combined in the world increased by 28%.

Asus completed 2019 among the leaders in the gaming laptop market in large regions. For example, in Europe, the company's share was 24% against 22% in 2018. In North America, the company's share increased from 17% to 23%, and in the Asia-Pacific region it increased from 28% to 35%.^[6]

2018

Revenue decline of 10% to NT $352.45 billion

Asus ended 2018 with NT revenue of $352.45 billion ($11.44 billion), down 10% from a year earlier. Most of the company's turnover is still generated by personal computers: they accounted for 63% of annual revenues, and if you do not take into account the old phone models that have been withdrawn from sale, then the share of the PC division reaches 70%.

The second largest business of Asus remains the sale of components, including motherboards and video cards. The Taiwanese company earned 21% of revenue for 2018 from these products. Smartphones brought the vendor 13% of revenues against 17% in 2017. The share of IoT solutions in Asus's total revenue remained at 3%.

As for the regions, it is Asia still the largest Asus market with a share of 47% at the end of 2018. The European market accounted for 30% of revenues, and the countries of the Americas - 23%. These figures are given taking into account those withdrawn from sale. smartphones

Asus net profit in 2018 amounted to NT $4.24 billion ($137.6 million), down 73% compared to 2017.

The company's 2018 revenues declined largely due to weak demand for its smartphones and a shortage of Intel computer processors.

Along with the publication of the financial statements, Asus announced a plan to improve its business and restructure its telephone division. The company hopes to improve the situation by focusing on the development of gaming PC systems and more powerful smartphones focused on the gaming segment, and not on the mass market.

In its 2018 report, Asus noted that the company not only ranks first in motherboard and video card sales, but is also increasing its share in these markets, as well as showing better profitability.

In the laptop market, Asus focuses on thin and light devices, which accounted for a third of the company's laptop shipments in 2018. Deliveries of such devices jumped by 30%.^[7]

Asus CEO resigns. Two people took his place

On December 13, 2018, Jerry Shen, CEO of Taiwanese PC manufacturer Asustek Computer, announced his resignation. Instead, from January 1, 2019, two people will become the new directors of the company: SY Hsu and Samson Hu. The first was the head of Asustek's computer business by the time of the statement, and the second was the head of customer support worldwide. Read more here.

Intel focused on Apple and left ASUS and Acer without processors

At the end of October 2018, information appeared that the main reason for the shortage of computer processors was Apple. Other PC manufacturers, including [[[ASUS|ASUS]] and Acer, are suffering from this collaboration between Intel and Apple. Read more here.

A fine of 65 million euros for price manipulation

In May 2018, ASUS announced a fine of 65 million euros, which the European Union imposed on the company in connection with the conduct of dishonest computer business in the region.

In February 2017, the European Commission began conducting investigations into ASUS, Denon & Marantz, Philips and Pioneer, which were suspected of violating antitrust laws. The essence of the claims against these manufacturers was that they forced Internet retailers to set only those prices for consumer electronics that vendors want. Laptops, audio and household appliances fell under the dictation of the cost.

Price manipulation could have an impact not only on partners ASUS, Denon & Marantz, Philips and Pioneer, but also on other online stores. This is due to the fact that the software used to set retail prices for many online sellers automatically adjusts the price list in accordance with the data provided by the largest retailers, the European Commission explained.

According to the source of the Nikkei publication, manufacturers in each region often have to coordinate prices with retail partners in order to achieve the desired level of margin. This practice can easily get out of control in Europe if you do not carefully deal with it, the source added.

ASUS Chief Financial Officer Nick Wu called the fine of 65 million euros imposed on the company in the EU for anti-competitive methods high. At the same time, it is not known how long ASUS dictated its prices to networks, since neither the European regulator nor the Taiwanese PC manufacturer itself provided detailed information about the investigation.

Now ASUS will more carefully train employees to comply with the law in order to prevent this from happening again in the future, he said.[8]

2017: Falling revenue as smartphone market slumps

On February 9, 2018, ASUS reported the smallest profit in seven years received at the end of 2017. Sales of the Taiwanese computer equipment manufacturer also declined.

As follows from the report published by the company, ASUS's net income for the past 12-month period amounted to Taiwanese 15.5 billion dollars (about $528 million at the exchange rate as of February 12, 2018), which is 19% less than in 2016. The company has not recorded such a low profit indicator since 2010, the Taipei Times notes.^[9]

ASUS revenue fell 8% to 392.8 billion Taiwan dollars ($13.4 billion), which was the result of increased competition in the market from Chinese vendors and sluggish sales of ZenFone smartphones, ASUS CFO Nick Wu said during a press conference with investors. He also added that the profitability of the company was negatively affected by the rise in price of NAND Flash memory chips and other key components, Nikkei reports.^[10]

Sales of personal computers provided ASUS with 63% of its revenue. The company notes the growing demand for gaming PCs, whose sales in 2017 increased by 20%. DigiTimes, citing ASUS, reports that in 2017, a Taiwanese vendor delivered 1.5 million laptops worldwide for gamers. ^[11]]

The second most important product segment for ASUS was computer components such as motherboards. They accounted for 18% of the company's annual revenue. Almost the same was the contribution from mobile devices, including tablets and smartphones: their sales brought ASUS about 17% of revenue. The remaining approximately 3% of the company earned on solutions related to the Internet of Things segment.

From a geographical point of view, the largest market for ASUS products was Asia, which accounted for 42% of total sales in 2017. European markets provided another 36% of revenue, the contribution of America (North and Latin) amounted to 22%.^[12]

2016: Falling revenue due to lack of PC components

In February 2017, ASUS reported on financial results for the past year. Sales of the company decreased by 2% due to weak sales of laptops, which was caused by a lack of components.

In 2016, ASUS recorded a net profit of NT $19.2 billion (about $624.1 million), up 12% from a year earlier. At the same time, revenue during this time decreased from Taiwan $436.5 billion to Taiwan $428.7 billion ($14 billion).

Most of ASUS's revenue is still generated by personal computers, which accounted for 65% of ASUS revenue, compared to 63% in 2015. Deliveries of desktops and laptops of the company fell from 21.5 to 20.61 million units, which is partly to blame for the shortage of some components, such as RAM and displays.

According to ASUS CEO Jerry Shen, component shortages can lead to higher prices for them and increased production costs. In order to offset production costs, the company has already increased the retail value of some laptop models in a number of countries, and plans to do the same for new products.

ASUS Chief Financial Officer Nick Wu noted that in an environment where the company lacks components, it distributes them in favor of highly profitable laptops, including gaming models and hybrid devices, in order to maintain a margin in the business. At the same time, the company predicts a drop in computer sales by 15-20% in the first quarter of 2017 due to the seasonal factor.

About 18% of ASUS revenue in 2016 came from smartphones and tablets. The company announced the postponement of the release of the new flagship smartphone of the ZenFone series from April to the maximum until July 2017. The reasons for the delay are the instability of exchange rates and the lack of necessary components.^[13]

2015

12% profit drop

In February 2016, ASUS published its annual financial report, according to which the company's profit decreased by 12%. The main headache of the Taiwanese manufacturer is associated with currency problems in the world and a drop in demand for personal computers.

In 2015, ASUS revenue amounted to 436.5 billion Taiwan dollars ($13.1 billion), which is approximately the same as a year ago. Net profit during this time fell to Taiwan $17.1 billion ($513.6 million) from Taiwan $19.5 billion ($585.7 million). Operating profit decreased by 1% to Taiwan $20 billion ($600.7 million).

The computer business, which brings ASUS about 63% of revenue, showed a decline. In 2015, the company released 21.5 million desktops and laptops, which is 4% less than in 2014. Shipments of laptops decreased by 5% to 19.3 million units.

PC business is falling not only from ASUS, but also around the world. Moreover, according to IDC analysts, in 2015 the volume of the global computer market decreased by the largest amount in history (by 10.4%) and amounted to 276.2 million units. Previously, deliveries of these devices fell below 300 million only in 2008.

The ASUS report cites data from GfK researchers, according to which the company is the largest seller of gaming laptops in Russia, as well as in China, the USA, France and Germany. In 2016, the manufacturer expects to increase the supply of such equipment by 100%.

The weakening sales of ASUS PCs contrast with the strong growth of the mobile business. In 2015, the Taiwanese vendor prepared 25.9 million mobile devices for sale, increasing deliveries of the previous year by 45%. The release of mobile phones jumped 135% and reached 20 million units. Smartphones and tablets accounted for approximately 21% of the company's revenue.

In 2016, ASUS plans to release 25 million mobile phones and enter the top five world leaders. ASUS CEO Jerry Shen noted that the company has moved away from its previous strategy and does not seek to flood the market with many pipes.^[14]

Interest in buying HTC

On June 12, 2015, it became known that ASUS could buy the Taiwanese smartphone manufacturer HTC. The management of the latter denies the sale of the company.

According to Reuters, citing ASUS Chief Financial Officer David Chang, the issue of a takeover of HTC was raised at the company's annual meeting of shareholders. ASUS Chairman Johnny Shih did not rule out this deal, but David Chiang added that the chances of concluding it are small as ASUS tries to grow on its own.

ASUS announces interest in buying HTC

Later, ASUS management completely announced the absence of investment plans for HTC, and the latter, in turn, issued another statement refuting rumors about the sale.

"HTC has not held any negotiations with ASUS on this issue and will not consider combining with ASUS," HTC quoted Reuters as saying on the official website of the Taiwan Stock Exchange.

I must say that rumors that HTC could be attached to a more profitable and successful manufacturer of mobile devices have appeared in the media several times, and the Taiwanese company has constantly had to refute them. So, on June 2, 2015, the chairman of the board of directors and co-founder of HTC, Cher Wang, announced that the company was not for sale, in response to a media report about interest in HTC from the Chinese smartphone manufacturer Xiaomi.

ASUS is a popular brand in the laptop market. At the same time, the company is actively developing its telephone business, and the purchase of HTC could accelerate the growth process. However, ASUS is already rapidly increasing sales: HSBC bank analysts expect that in 2015 the company will release 89% more smartphones than a year earlier. According to ASUS's own forecasts, the release of branded "smart" phones in 2015 will almost triple and reach 25 million units.

In May 2015, ASUS prepared 1.5 million smartphones for sale, which allowed the manufacturer to profit for the first time in this market.^[15]

2014:9% profit drop

On February 13, 2015, ASUS reported on the financial results of its activities in 2014. The profits of the Taiwanese computer manufacturer decreased largely due to unfavorable fluctuations in exchange rates.^[16]

In 2014, ASUS received revenue of Taiwan $436.26 billion (just over $13.9 billion), up 4% from a year earlier. Net profit for the same period decreased by 9%, amounting to 19.47 billion Taiwan dollars ($620.35 million). Operating profit increased by 3% year-on-year to Taiwan $20.2 billion ($639 million).

One of the main factors that influenced the decline in profits was the change in world currencies not in favor of ASUS. In particular, due to the weakening of the ruble against the dollar and the euro, the company lost 713 million Taiwan dollars ($22.71 million) in October-December 2014. A quarter earlier, losses related to currency fluctuations were measured at NT $359 million ($11.44 million). Russia accounts for 5-6% of ASUS income, ASUS CFO David Chang reported earlier.

Due to the cheap ruble, ASUS profit fell by 9%

Smartphones helped to increase the annual turnover of ASUS, the supplier's shipments of which reached 8.5 million units in 2014, an increase of six times compared to a year ago. According to the results of the last three calendar months, ASUS shipped more "smart" phones than expected - 4.5 against 4 million units. In 2015, the manufacturer predicts 17 million pipes produced.

Another driver of ASUS revenue growth is the personal computer market, which is improving due to an increase in corporate orders and Microsoft's end of support for Windows XP. In 2014, ASUS increased laptop production by 10%, while tablet shipments from the company decreased by 20% due to the high popularity of smartphones in the world.

2008: Start of production only under its own brand

Net profit of the company in 2008 amounted to $840 million. Asus revenue in 2008 reached $22.9 billion.

Since January 1, 2008, Asustek has only produced products under its own brand. The entire ODM business is fully transferred to the newly opened subsidiaries of Pegatron Corporation and Unihan Corporation. Pegatron is engaged in the production of computer cases and other devices, Unihan was created for the contract production of computer components.

2007: Capitalization $10.66 billion

The market capitalization of the company as of mid-October 2007 is $10.66 billion.

2005: One in three PCs in the world runs on Asus motherboard

In 2005, the company released 52 million motherboards. This means that every third desktop in the world is assembled on an ASUS motherboard. If you put them in a row, the length will be longer than the distance from New York to San Francisco.

1989: Founding of the Company

The company was founded in 1989 by TI Tung and Ted Hsu.

The founders of the new Taiwanese computer and electronics company decided to give it a name in honor of the mythological winged horse Pegasus (in English - Pegasus). However, in the end, the first three letters were discarded and the company was registered under the name ASUS so that it would be located higher in the telephone directories.

Products

Laptops, motherboards, video cards, monitors, optical drives, barebone systems, storage devices, desktops, servers, mobile phones and network equipment.

Notes