Abstract

Different Approaches by Asus, Acer

After Acer in March 2008 acquired a 100% stake in Eten through a share swap and Garmin and Asus announced their cooperation in February 2009, the competition between Acer and Asus has again attracted the industry's attention. Both Acer and Asus exhibited new models during the 2009 MWC.

Products launched by Acer highlighted a multi-functional Smartphone concept. The main selling points of the products were exterior design and hardware functions. Products launched by Garmin-Asus reflected the navigation Smartphone concept, with the focus on LBS-related applications. Hardware specifications and other functions were downgraded.

There are also differences between Acer and Asus in terms of sales channels. Acer initially focused on sales through open channels. It expects to start selling through operator channels in the fourth quarter of 2009. Garmin-Asus has directly sought cooperation with AT&T, hoping to make prices more acceptable through operator subsidies.

It can be foreseen that more and more mobile phone vendors will cooperate with software companies either through strategic alliances or acquisitions to take advantage of the new sales wave combining electronics hardware and software applications.

Navigation Software to Be Core Value of Garmin-Asus

Smartphones have been growing rapidly in recent years. However, the functions and product positioning of most Smartphone products developed by Taiwanese vendors are not very clear. By contrast, many international brands, such as Apple, Nokia, and Google, have tried to set up application stores to highlight the mobile application characteristics of Smartphones. The cooperation between Garmin and Asus marks the first time that Taiwanese products use a Smartphone sales models whereby software drives the hardware. Furthermore, the product positioning of Garmin-Asus is different from HTC.

Garmin-Asus will first use the Nifone G60 to enter the sales channels of operator AT&T in North America. The second model Nifone M20 will possibly enter the European market. Initially the company expects to attract existing PND users through Garmin's brand recognition. These two models of Garmin-Asus, besides testing market response, will also have the benefit of maintaining a stable sales volume.

Navigation software will be the core sales value of Garmin-Asus. Convenience of use will directly impact product sales. Garmin-Asus will have to concentrate on the feedback of users as an important source of information for developing a new generation of products. Only then will Garmin-Asus have the opportunity to cross the LBS chasm and become a market driver.

Appendix

List of Companies