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Gamers might figure victory rests on a wide, tall, souped-up PC with the best in graphics and sound. Now Asustek Computer, a Taipei-based company with new management, is giving gamers a lot of that on a smartphone.
Asustek’s ROG phone released in September under the company’s 12-year-old Republic of Gamers label come with a powerful 2.96 gigahertz Qualcomm Snapdragon 845 processor with 8 gigabytes of RAM. Today the phones sell in China, Europe, Taiwan and the United States for about US$650 apiece.
The developer better known as just Asus is plotting to release even more gaming gear because competition is growing and the company is minding its bottom line.
According to a report from the industry consultancy Newzoo, gaming is growing 13.3% annually and forecast to reach US$137.9 billion this year. Newzoo says mobile gaming alone is growing at more than 25.5% year on year toward $70.3 billion. PC gaming makes up 24% of the global total with mobile (including tablets) taking a 51% market share.
Against competition such as Acer and Micro-Star International, Asus is also pushing out a new generation of notebook, the Zephyrus S.
Changes are also reaching the senior management of the ASUS gaming division. The company’s global marketing director Derek Yu has quietly made it known he will be moving on from the company. He’s a face for the brand, often being interviewed by the media and presenting products at launches such as this year’s Computex tech show in Taipei.
It’s unclear why Yu is leaving, senior Asus management told Business Next. He had also taken time off in 2010 to work for LCD screen manufacturer Vizio.
Yu joined the company in 2004, when he took charge of motherboards and gaming control panels. The Republic of Gamers brand made its first foray into a once nascent gaming niche by building openly accessible platforms based on its motherboards and graphics cards.
He returned to ASUS in 2013 to run its new mobile phone product line, led by models such as Padfone and ZenFone. The following year Yu became head of global strategy for gaming.
Now the Asus gaming department is feeling the competition, say from Micro-Star International with an equally large staff of 700-plus, because annual sales numbers show it’s not winning. Still, the ROG brand within Asus is bringing in a hefty share of revenue.
Revenue grew 10% last year and profits are forecast at 10% to 30% this year.
Acer, Lenovo and Hewlett-Packard vie with Asus for sales in Europe, said CEO Jerry Shen, at last month’s launch event.
Rivals are forcing Asus to reconsider its business strategy. It plans to respond first by making higher-grade devices, Shen said.
News source is from Business Next.
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