NO LACK OF DEMAND:The firm has changed its sales strategy, as average selling prices of key notebook components, like panels and DRAM, have cut into its margin

Taipei Times
Date: Nov 12, 2016
By: Lauly Li / Staff reporter

Asustek Computer Inc (華碩) yesterday forecast that its revenue would drop as much as 24.65 percent this quarter from last year, as the company has changed its sales strategy, cutting shipments of mid to low-end notebook computers to maintain its profitability amid rising cost pressures.

The company forecast that its revenue would drop to between NT$100 billion and NT$110 billion (US$3.14 billion and US$3.46 billion) this quarter, compared with last year’s NT$132.72 billion.

The forecast represents little or no growth in sales from last quarter’s NT$107.5 billion.

Asustek chief financial officer Nick Wu (吳長榮) said the decision was made in response to the increasing average selling prices of key notebook components, such as panels and DRAM, rather than because of market demand.    [FULL  STORY]