Asus Eee PC a hit for Asustek

The Asus Eee PC by Asustek performed well in Japan, with around 10,000 units sold during the launch-week. Since then, worldwide demand has been hugely outstripping supply, with many retailers finding it difficult to get the Asus Eee in stock. However, Asustek’s president, Jerry Shen, expects that the low-cost PC market will be flooded with new competitors by the second and third quarters of 2008.

Shen predicts that Asustek’s main competitor will be Acer, because of their experience in competitive pricing, manufacturing support, and market planning. Hewlett-Packard (HP) could also present a threat.

Micro-Star International (MSI) and Gigabyte Technology are also likely to release their own low cost PCs, but are unlikely to pose a significant challenge to the Asus Eee.

The biggest challenges for the future of the Asus Eee are threefold. The company needs to solve the issue of the small panel size, increase battery life, and reduce battery charge times. Meeting these challenges could increase the cost of the Eee PC to such an extent that its low-price advantage would be eliminated. However, Shen is keen to stress that the Asus Eee’s mainstream price will not see much of a difference with each new release.