Asustek Computer Inc (華碩) yesterday cut its notebook computer shipment forecast for this quarter, saying it is reducing sales exposure to some emerging markets in a bid to prevent possible foreign-exchange losses due to currency volatility.
The company forecast that its notebook shipments would grow 6.04 percent sequentially to 4.56 million units from the previous quarter’s 4.3 million units. That compares with its previous estimate of an 11.62 percent increase to 4.8 million units.
“The decision to cut shipments to some regions was not due to soft demand, but because of drastic changes in foreign currencies in the middle of last month,” Asustek chief financial officer Nick Wu (吳長榮) said by telephone.
“Maintaining profitability is the company’s top priority,” he added.
Asustek in July slashed its full-year shipment target for notebook computers from 22.8 million units to 20 million amid concern over weak demand in the PC market.
Wu declined to respond to questions over whether Asustek would revise downward its annual notebook shipment target again.
“We do not provide long-term shipment forecasts,” he said.
The PC industry has improved since Microsoft Corp’s Windows 10 hit the market at the end of July, while Asustek’s notebook inventory level in European and Asian markets has been lowered to a “healthy” level, he said.
The company’s sales last month surged 18.18 percent to NT$40.82 billion (US$1.24 billion) from the previous month’s NT$34.54 billion, but the figure dropped 3.17 percent from last year’s NT$42.16 billion.
In the first eight months of the year, the company’s cumulative sales totaled NT$295.67 billion, down 0.74 percent from a year earlier.
“Based on the positive feedback from consumers and Asustek’s retail partners, we expect Windows 10 to gradually spur notebook replacement demand in the next six months,” Wu said.
However, volatile currencies in China, Russia, Brazil, Indonesia and Malaysia pose a threat to Asustek’s notebook sales in the next three months, he said.
Apart from reducing shipments to emerging markets, Asustek plans to raise notebook prices there to prevent foreign-exchange losses, he added.
Separately, Compal Electronics Co (仁寶電腦), the world’s No. 2 contract notebook computer maker, said sales surged nearly 7 percent to NT$64.22 billion last month from a month earlier, but declined 11.28 percent from a year earlier.
Notebook shipments increased 14.28 percent to 3.2 million units last month from the prior month’s 2.8 million units, Compal said in a statement.
“This month’s notebook shipments should grow from last month due to new model launches by clients,” said a company official, who declined to be named.
Asustek shares climbed 1.9 percent to NT$295.50 in Taipei trading yesterday, while Compal’s stock price surged 3.28 percent to NT$18.90.
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