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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Asustek aims to be No.3 laptop vendor in 2011 Tue May 26, 2009 9:01am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Kelvin Soh TAIPEI (Reuters) - Netbook PC pioneer Asustek aims to double its market share to become the world's No.3 laptop vendor, riding the rising popularity of low-cost laptops among budget-conscious consumers during the global downturn. Asustek is currently No.5 in the world; Acer and Hewlett-Packard occupy the first and second positions. Asustek pioneered the wildly successful low-cost netbook PC in 2007, but has been gradually losing market share as other brands enter the market, and as it grapples with a reorganization following its fourth-quarter loss last year. Asustek will be introducing five new laptop models based on Intel's consumer ultra-low voltage chip (CULV) this year, as part of its strategy to grow its share of the market. "We call it the three-three policy, to be ranked third by market share in 2011," Asustek Chief Executive Jerry Shen told Reuters in an interview at the company's headquarters on Tuesday. "Our current market share is about 5 percent, and it would have to be about 10 percent to become number three." Shen gave a similarly bullish outlook for the company's prospects in China, where he said he expected to be on par with second-ranked Hewlett-Packard by market share in 2010. "We don't think Asustek can take first place in China, but to be on equal footing with the current No.2 player should be possible next year in the laptop PC segment," Shen said. Asustek and crosstown rival Acer now share fifth place in China by market share, according to research firm IDC. Both companies were included in a list of approved brands under a Chinese stimulus package that allows them to sell computers on the mainland. The two Taiwanese rivals had previously faced considerable headwinds competing in China, which is dominated by home-grown brands such as Lenovo and Founder. U.S. SURGES, EUROPE FLAT Shipments to the United States have increased multi-fold because of the growing popularity of the company's Eee PC line of netbook PCs. Demand in Europe, which provides the largest share of the company's revenue, is sluggish, as consumers cut back on their spending. "In the United States, we're shipping as many computers monthly as we used to annually," said Shen, who became Asustek's CEO last year. "But Europe isn't growing at all." Asustek is in the midst of a reorganization following its fourth-quarter loss in 2008, which it blamed largely on inventory write-offs and foreign-exchange related losses. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: HP recalls 15,000 laptop batteries sold in China Reuters Global Technology Summit Who will come out on top? Technology companies are drawing attention from investors and consumers alike as everyone tries to predict the market bottom and what new inventions might drive a recovery. Full Coverage More Technology News Nokia opens Ovi online software and content store Twitter eyes foray into TV HP recalls 15,000 laptop batteries sold in China Iranian moderate candidate criticizes Facebook ban YouTube star who witnessed shooting comes clean More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video North Korea fires more rockets, says U.S. hostile | Video Mike Tyson's daughter critical after mishap: reports Q+A: Why did North Korea rush to a nuclear test? Canadian TV rapped for Obama assassination joke Obama says North Korea nuclear test a "grave concern" | Video Q+A-Why did North Korea rush to a nuclear test? 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