Asustek Computer Inc Q1 2019 Earnings Presentation (Chinese, English) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Albert Hung - JP Morgan Chase & Co, Research Division - Analyst : Earlier, our CEO talked about higher investments on ROG. Do we have KPIs to measure the performance of our phone business? And whether there would be synergy created when we combine marketing for ROG phones with ROG systems. Unidentified Company Representative We are increasing our investment this year with a focus on growing the gaming phone market. Take our first generation ROG phone for example. That kind of sales, that kind of size didn't represent that the market was really opened up. So with the second generation, we're focusing on not just our product but also the content, the ecosystem. We want to work with the ecosystem to really grow the ROG phone market. And that is why we are putting more investment on ROG this year. As for the KPIs, at ASUS each BU sets its set of KPIs at the beginning of the year. The phone business is no exception. Of course, when we set the KPIs, we will take into consideration the status of this business unit to set reasonable KPIs. As for synergy that might be created across product lines, this is something we've been pursuing. For example, with our ROG series, we have Aura Sync, a software that can control the lighting. This could be used on ROG PC, notebook as well as ROG phone. So this is something that goes beyond product lines. With the ROG sub-brand, of course, we want to maximize the brand equity. In terms of marketing, we are already putting together ROG PC and notebook marketing campaigns. The phone business or phone as a product is not entirely the same as a PC or a notebook. Going forward, we will think about how to better create synergy across product lines. A trend we're seeing is that there are more cross-platform support. For example, in earlier days, software could not work across different platforms. The PC software was different from device or the phone platform. But now we see cross-platform support being more common. You can play the same game across different devices, notebook or the phone. So we are going to integrate with our ROG offerings.