It’s no secret that Asus is going through a rough financial time. The revenues and sales of the company are in a rather bad moment, and yet, they do not seem to have any intention of changing their pricing policies, in which their products at launch are priced at far more than their competitors, relying mainly on the prestige of their brand. Is this a successful marketing strategy or should they change the modus operandi in which they “attack” the market with their products?
Let’s take an example from one of the latest product launches of the brand, the mini PC ROG GR8 II. It is a mini PC equipped with an Intel Core i7-7700 (without a ‘K’) processor, 16 GB of 2400 Mhz DDR4 RAM, a 512 GB SATA M.2 SSD, a 1 TB HDD and a GeForce GTX 1060 6GB NVIDIA graphics card . For this all this gear, Asus asks for 1199 euros plus VAT. If we put together the same setup, piece by piece, in any website, the total cost is little more than 1000 euros, 1100 euros if you want to have better quality components. So, why the overprice?
Asus relies on the prestige of their brand
I will not speak poorly of the quality of components Asus employs, as I consider that, in fact, that their motherboards and graphics cards have are of very good quality. However, they don’t stand out from other brands. In fact, in the graphics cards market we can see an increase in pricing of up to € 200 in high-end models above the competition without providing any extra performance (I am making an example of the Asus GeForce GTX 1080 Ti STRIX OC [€ 979 when it came out, € 829 right now] comparing it, for example, with Aorus’ GeForce GTX 1080 Ti Gaming OC Black Edition [€ 709 at present]).
However, this is not the only area with issues. Let’s remember the monster of a laptop they launched a long time ago, the GX700 with a price of € 4,499 at launch, in a time when a desktop setup with better features would cost less than € 3,000, not to mention their peculiar strategy of launching new laptop models onto the market, while loading them with past-generation hardware. Of course, these are two very questionable marketing strategies that have not done well for this particular manufacturer at all.
Asus’ questionable strategy
Asus is a great manufacturer, we have no doubt of that, and although it has had some very questionable strategies that have caused a serious decrease in their sales, they are stubborn enough to continue launching products onto the market that are much more expensive than they should be for the hardware they use, once again, relying on the strength of the brand. It would seem that recently, users have realized this, and as proof of this we see the decrease in product sales. This is something that is pushing Asus to either, make its move, or otherwise soon fall into a seriously dangerous economic position.
What do you think? Do you think that the quality, performance and/or design that Asus offers justifies the price their products have over their competitors? Do you think that the company should continue with its pricing policies, or should they adjust prices to the current market to become a better competitor?