It seems like it was only yesterday when Dell was the number one PC company. But times have changed and it could be that Dell may end up as the number four PC maker if Asus has their way. It seems that Asus is courting Toshiba which could potentially push Asus to the number three position with either a merger or acquisition.
In a recent news article it also stated that:
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.
It seems to me that a deal between Asus and Toshiba would be a good match. Both companies make quality products that are priced fairly. This alone should push both companies together to the number three position. With Acer nipping at the heels of Dell, the Round Rock company could see itself in the number four or five position in the next few years.
What do you think?