Asustek expects tough quarter

NEW PRODUCTS:The company expects sales to pick up significantly next quarter, with the introduction of the latest ZenFone models and new notebook computers

Taipei Times
Date: May 12, 2017
By: Lauly Li / Staff reporter

Asustek Computer Inc (華碩) yesterday said that second-quarter sales and earnings could drop to their lowest levels for this year due to product transition, rising component costs and a strong New Taiwan dollar.

“This is going to be a very tough quarter for Asustek, because of all the negative factors weighing on operations,” Asustek chief financial officer Nick Wu (吳長榮) told reporters after an investor conference in Taipei.

The company expects revenue from PC-related products, which contributed 66 percent to total brand sales of NT$98.2 billion (US$3.25 billion) last quarter, to drop by 5 to 10 percent quarter-on-quarter due to a seasonal slowdown, Wu said.

Smartphone and tablet sales are expected to plunge by 20 to 25 percent sequentially this quarter, while component sales are forecast to decline by 5 to 10 percent, Wu added.    [FULL STORY]

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