Asustek Computer Inc (華碩) yesterday reported a net profit of NT$2.19 billion (US$70.85 million), or earnings per share of NT$2.9, for the first quarter of this year, recovering from a loss in the previous quarter blamed on its lackluster smartphone business.
However, the figure was still 8.07 percent lower than the NT$2.38 billion it posted a year earlier.
Asustek said it has a mild outlook for this quarter and hopes to drive sales with new product launches in the second half of the year.
The smartphone segment incurred net losses of NT$554 million in the first quarter, but the company said it plans to aggressively expand the business this year.
Asustek said it has increased investments in its Republic of Gamers (ROG) line of products and plans to launch its second-generation ROG smartphone in the second half of the year.
The company would reveal its ZenFone 6 on Thursday next week in Spain, it said.
Asustek said it has adjusted the product mix and inventories in its PC segment, which made up 70 percent of total sales in the first quarter, to cope with a shortage of Intel Corp central processing units (CPUs) and demand for graphics cards last year, Asustek co-CEO S.Y. Hsu (許先越) said.
The company expects the CPU shortage to be resolved by the third quarter, Hsu said, adding that it would continue using Advanced Micro Devices Inc’s solutions to fill the gap in the meantime.
The company would reveal new PC products at Computex Taipei later this month, as it seeks to capitalize on the back-to-school and the holiday seasons in the third and fourth quarters respectively, Asustek said.
The company would also strive to boost the sales of its ultra-light PCs to 50 percent this year, co-CEO Samson Hu (胡書賓) said.
Asustek said it would continue to promote its gaming notebooks by supporting the ecosystem and improving the management of the gaming community.
The company is working on diversifying its product portfolio in the PC segment, as consumers demand more specific products tailored to their needs, Hu said.
The company, which in 2014 created a sub-brand called ProArt that targets creators, last month unveiled a new line of products, including ProArt desktops and notebooks.
When asked whether a tariff hike by the US on Chinese products would affect the company’s sales, Hu said that although some products, such as motherboards and graphics cards, would likely suffer, the effects would be limited, as Asustek’s suppliers have already moved production sites to Taiwan and Vietnam.
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