ASUS's Wild Growth Continues in Tablet, Notebook Markets Bump Earnings 40%
October 30, 2012 3:08 PM
comment(s) - last by
ASUSTek Computer is the biggest winner among the Asian OEMs
While Hong Kong-based Lenovo Group, Ltd. (
) set a tough earnings pace to follow, possibly
bumping veteran Hewlett-Packard
) from the first place spot in sales; ASUSTek Computer Inc. (
) in many ways looked even more impressive, post higher growth and larger sales/earnings gains.
ASUSTek now holds an estimated 7.3 percent of the personal computer market, after a 12 percent rise in shipments. In Q3 2012 ASUSTek shipped 5 million notebook PCs (up 14 percent) and 2.3 million tablet PCs (up 287.5 percent). That drove its profits to increase 43 percent on a year-to-year basis to T$6.71B ($229.7M USD). Sixteen analysts polled by FactSheet expected a mere T$5.41B ($185.2M USD). The 24 percent earnings surprise is a testament to just how wild and unpredictably ASUSTek is growing.
Base revenue was up 9 percent to T$111.44B ($3.814B USD). ASUSTek also earned T$1.18B ($40M USD) in currency gains.
The positive surprise by ASUSTek sharply contrasts the dreadful results of the Taiwanese OEM's rivals: Hewlett-Packard, Dell, Inc. (
), and Acer, Inc. (
). ASUSTek's Q4 2012 (holiday) outlook is also more optimistic
', with notebook shipments of 5.5 million units (up 10 percent) and tablet shipments of 2.6 million units (up 14 percent) predicted.
death of the netbook
, tablets have grown increasingly important to PC OEMs growth, and ASUSTek appears to be one of the only major players to be getting the equation right. While its Android tablets have shown promising sales, ASUSTek has even higher hopes from its
Windows 8 tablet lineup
, which should land next month, in time for the crucial holiday season.
ASUSTek is bullish on its Windows 8 lineup.
Among those will be the
Windows 8 Vivo Tab RT
, an LTE tablet that will be ASUSTek's first design with a carrier contract. The Vivo Tab will be carried by the AT&T, Inc. (
) network in the U.S.
Sanford C. Bernstein analyst Alberto Moel said ASUSTek is well positioned, telling
The Wall Street Journal
, "From the Windows 8 products we've seen, I'd say Asustek has the most competitive lineup so far. Their Windows 8 product prices are lower than expected, so we expect them to do well."
This article is over a month old, voting and posting comments is disabled
RE: High profits
10/30/2012 3:56:26 PM
Well. You can blame Asus for the Netbooks rising to power with it's Eee PC line.
However, I think the problem with the Netbook (Much like ARM based tablets) is that people seem to think that they will be a replacement for all of their computing devices, only to realize that the form factor and performance is woefully inadequate for allot of tasks, so they will still need to keep around a Desktop or a Notebook.
Plus, they're more for content consumption not content creation, the Netbooks even struggled with content consumption tasks like watching high-definition video, for instance my Atom netbook couldn't even play 720P video without stuttering, I ended up getting a Broadcom Crystal HD chip off ebay for $20 and installing it myself so I could play HD video, but that is not something the average joe would do.
Ultimately, people were merely drawn to the price only to be let down by the performance, even today years later the Atom processor hasn't undergone any significant performance enhancements, which lets face it, ain't going to reinvigorate netbook sales.
RE: High profits
10/30/2012 6:19:40 PM
"Ultimately, people were merely drawn to the price only to be let down by the performance" couldn't have said it better about the tablets.No one wants to admit they got snookered, just ask the apple fans.:)
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
Acer Posts Anemic Profit on Currency, Tax Troubles; Misses Earnings
October 22, 2012, 4:11 PM
Gartner: Lenovo Grabs the Top Spot in Global PC Market from HP
October 11, 2012, 9:12 AM
HP Earnings Outlook Clouds, Stock Price Declines
October 4, 2012, 8:37 AM
Report: Netbook Loyalists ASUSTek, Acer, and MSI to Bury the Defunct Device
September 7, 2012, 10:42 AM
Windows RT Tablet runs Full PC Version of Unreal Engine 3 Demo
August 29, 2012, 3:23 PM
Project Moonshine: Google's Plan to Flatten Android App Icons Leaks
April 16, 2014, 1:46 PM
Apple, Microsoft, and Major U.S. Wireless Carriers Embrace Smartphone "Kill Switch"
April 16, 2014, 10:08 AM
Lenovo Outs New Flex Notebooks, Desktop PCs
April 16, 2014, 9:39 AM
Samsung Launching Android Wear Smartwatch, High-end Tizen Smartphone This Year
April 16, 2014, 8:45 AM
Microsoft Announces the First Steps in Its "Universal Apps" Program
April 15, 2014, 7:59 PM
Amazon Fire Phone Prototype Leaks, Will Feature 3D Camera Interface
April 15, 2014, 1:33 PM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
iPad Exploiter is Freed by Federal Appeals Court
April 11, 2014, 7:40 PM
It's Very Likely Neanderthals and Humans Had Sex, Produced Offspring
April 10, 2014, 8:40 PM
Cops at Historically Troubled LAPD are Sabotaging Digital Recording Devices
April 9, 2014, 11:10 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information