Fri, Oct 11, 2019 - Page 12 News List

Asustek upbeat after quarterly growth, Acer declines

By Natasha Li  /  Staff reporter

Asustek Computer Inc (華碩) on Wednesday gave an optimistic outlook for the upcoming quarters, as the PC brand reported revenue of NT$37.78 billion (US$1.23 billion) for last month, a 4.4 percent increase from a year earlier.

Third-quarter revenue increased 5 percent year-on-year to NT$93.9 billion, Asustek said in a statement.

It marked its best quarter this year, compared with revenues of NT$74.23 billion in the second quarter and NT$85.9 billion in the first quarter, company data showed.

Asustek said last quarter’s figures were better than expected, as shipments of laptops and motherboards recovered to 2017 levels.

In particular, laptop shipments to European and Asia-Pacific markets increased by double-digit percentages on an annual basis, while gaming laptops posted increases of more than 20 percent, it said.

While new product launches, product portfolio adjustments and a strong brand image helped the company recover its growth momentum last quarter, short-term risks and market uncertainties linger as the trade conflict between the US and China continue to impact global markets, Asustek said.

Moreover, the unstable supply of central processing units by Intel Corp might further affect its production, it added.

From January to last month, Asustek reported total revenue of NT$254.04 billion, down 3.05 percent year-on-year.

Rival brand Acer Inc (宏碁) also reported a positive growth of 6.23 percent year-on-year in revenue to NT$24.34 billion last month, ending two consecutive months of declines.

However, revenue for last quarter slid 3.8 percent year-on-year to NT$62.87 billion, the company said in a statement.

For the first nine months of the year, cumulative revenue declined 3.31 percent annually to NT$172.7 billion, it said.

Despite the setbacks, Acer said it is continuing to develop its multibusiness strategy through its subsidiaries, including Acer Cyber Security Inc (安碁資訊), Acer Synergy Tech (智聯服務), Weblink International Inc (展碁國際) and Altos Computing Inc (安圖斯).

Acer is seeking to grow its business beyond laptops, which accounted for about 60 percent of its total revenue, as its share of the global PC market slipped from 6.4 percent to 5.4 percent, or 3.39 million units, in the second quarter, market researcher Gartner Inc said.

The company has instead promoted its gaming products to capture the growing gaming community.

Early this year, Acer Asia-Pacific regional president Andrew Hou (侯知遠) was quoted as saying that the company retains a conservative attitude for this year in the face of a CPU shortage from Intel Corp and a volatile PC market shaken by the US-China trade dispute.

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