Asustek Computer Inc (華碩), the world’s fifth-largest PC brand, could miss its target of shipping 12 million tablet devices this year because of a “sudden drop in tablet industry demand” worldwide, UBS Securities Pte Ltd said yesterday.
“We believe Asustek will have to revise down its full-year shipment target,” Arthur Hsieh (謝宗文), chief electronics hardware analyst at UBS’ Taipei branch, said in a client note.
Hsieh said the brokerage had cut its tablet shipment forecast for Asustek by 24 percent for this year, meaning the company might only ship about 9.1 million tablets this year.
In the second quarter, Asustek shipped 2.3 million tablets, up 13.1 percent year-on-year, with a 4.6 percent share of the global market, the International Data Corp (IDC) said in a report on July 24.
Global tablet shipments grew 11 percent annually in the second quarter to 49.3 million units, but declined 1.5 percent from the first quarter because of the rise in popularity among consumers of large-screen smartphones, and longer-than-anticipated ownership cycles, IDC said.
UBS also expects Asustek to register a mild recovery in notebook computer shipment in the current quarter and lead its peers in launching a new 2-in-1 hybrid notebook model later this quarter or early next quarter.
Hsieh said the new Transformer Book T300 Chi using the Intel Core M processor could help drive the company’s overall notebook sales momentum next quarter, but UBS still cut its notebook computer shipment forecast for Asustek to 21 million units from 22 million units, the note said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president