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ASUSTek Computer is the biggest winner among the Asian OEMs

While Hong Kong-based Lenovo Group, Ltd. (HKG:0992) set a tough earnings pace to follow, possibly bumping veteran Hewlett-Packard Comp. (HPQ) from the first place spot in sales; ASUSTek Computer Inc. (TPE:2357) 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. (DELL), and Acer, Inc. (TPE:2353).  ASUSTek's Q4 2012 (holiday) outlook is also more optimistic than its foes', with notebook shipments of 5.5 million units (up 10 percent) and tablet shipments of 2.6 million units (up 14 percent) predicted.

With the 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 Vivo Tab
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. (T) 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."

Source: WSJ



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RE: High profits
By StevoLincolnite on 10/30/2012 3:56:26 PM , Rating: 2
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
By Uncle on 10/30/2012 6:19:40 PM , Rating: 1
"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.:)


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