14 DAY TRIAL // There are quite a number of notebook manufacturers worldwide and the amount of sales each of them scores yearly defines its success and income. Currently, Asustek holds less than 5% of the shares of the laptop market and is ranked as the seventh largest notebook PC brand. However, it seems that, according to a Chinese-language Commercial Times report, Asustek actually aims to reach at least the third position by 2011. The current interest of ASUS, in keeping with the report, is gaining Toshiba's shares, whether through a merger or purchase of the company, which currently ranks fourth on the laptop segment.
This revelation might come as a surprise, considering Asustek's normal policy, which stresses self-development and reliance on its own research capabilities. Now, though, it seems the manufacturer has hit a stump in its growth through its own means. The company has to expand its ways to deal with the strong competition set by Dell and Lenovo if it hopes to get anywhere beyond the seventh place it currently holds.
ASUS has to take note of the probability that HP, Acer and other laptop brands might have to make mergers of their own and should quickly decide on a course of action. However, although acquiring Toshiba would be the fastest way and would probably yield impressive short-term results, mergers require long-term analyses concerning economy, policies, interests etc., without which the instability and collapse of both companies may occur.
According to Asustek Chairman Jonney Shih, Toshiba seems to consider ASUS its preferred buyer. Nevertheless, mergers must account for the interests of both parties in order to ensure the company growth instead of a fleeting, short-term gain followed by bankruptcy. If the merger will occur, the two companies combined might score over 30 million sold products by 2011, easily achieving the third place.
In keeping with Shih, the fact remains that, despite talks with Toshiba having already taken place, no decisions have yet been made.