Asustek says new products to spur sales

HARSH TIMES::The No. 5 PC brand gave a bright forecast for Q3, despite an annual sales drop, as its peers released sales data and strategies to offset weak PC demand

By Helen Ku  /  Staff reporter

Tue, Jun 11, 2013 - Page 13

Asustek Computer Inc (華碩), the world’s fifth-largest PC brand, has forecast that its sales will increase this month from last month and that the growth will carry into the next quarter, when it will start shipping new products.

“Overall, demand for PCs is weakening due to the rise of mobile devices,” Asustek chief financial officer David Chang (張偉明) said by telephone yesterday.

“The major drivers of company sales this year will be tablet products, but macroeconomic conditions will determine how strong demand for those products will be,” Chang added.

He made the remarks after Asustek reported that sales last month grew 2.33 percent to NT$33.4 billion (US$1.12 billion) from April, but fell 6.9 percent from a year earlier, a decline Chang attributed to weak demand for traditional PCs.

The company’s tablet and notebook shipments are expected to contract by 10 percent this quarter from last quarter, Chang said.

Asustek’s guidance for notebook shipments and sales this quarter remained unchanged as it expects both shipment volume and sales to remain flat at 4.7 million units and NT$105.2 billion respectively in the January-to-March period.

However, since the company will start shipping new products next quarter, tablet and notebook shipments are expected to grow quarter-on-quarter next quarter, driving up Asustek’s sales, he added.

Meanwhile, Acer Inc (宏碁), the world’s fourth-largest notebook vendor, said sales last month fell 19.22 percent year-on-year to NT$26.3 billion.

On an annual basis, the company’s sales have been contracting for 11 consecutive months, though viewed by month, sales rose 1.93 percent last month from April.

In the face of slack demand for notebooks, Quanta Computer Inc (廣達), the world’s top contract laptop maker, said accumulated sales during the first five months of the year dropped 16.05 percent.

Quanta said its sales last month fell 0.54 percent month-on-month and 14.21 percent year-on-year to NT$61.07 billion, although notebook shipments increased 13.8 percent to 3.3 million units last month.

Accumulated sales in the period between January and last month fell 16.05 percent year-on-year amid clients’ inventory adjustments, Quanta investor relations official Alai Chiu (邱珮倫) said by telephone.

Driven by rising demand for large-sized data centers, Quanta’s cloud-related business sales, including those of cloud-based servers and tablets, are expected to grow more than 15 percent this year, Chiu said.

Meanwhile, Pegatron Corp (和碩), an assembler of Apple Inc products, reported that sales last month fell 0.01 percent year-on-year but rose 10.16 percent month-on-month to NT$72.05 billion.

Cumulatively, Pegatron’s sales during the first five months of the year expanded 15.36 percent to NT$358.77 billion from last year.

Contract notebook maker Wistron Corp (緯創) saw sales last month grow 15.89 percent month-on-month and 23.39 percent year-on-year to NT$58.66 billion. In the first five months, Wistron’s sales contracted 3.57 percent to NT$267.53 billion from a year earlier.