Asus revenue drops but hits forecasts in Q1

By Christine Chou, The China Post with CNA

Despite a recent sharp rise in component prices and currency fluctuations, Taiwan-based tech giant Asus (華碩) posted first-quarter revenue of NT$98.2 billion, which met analyst predictions. Asus posted March revenue of NT$41.6 billion, a 46 percent increase compared to the previous month and a year-over-year decline of 8 percent. The wider group, including all global units, saw monthly profit of around NT$45.1 billion, a 41 percent gain from the previous month and a 7 percent year-over-year decline.

The first quarter reaped NT$98.2 billion in revenue, a 16 percent quarterly drop and a 11 percent decline from the same period last year. The wider group gained NT$108.2 billion during the first quarter, showing a 14 percent drop from the previous quarter and a 9 percent year-over-year decline. Asus said although it had adjusted its product mix in the previous three months — boosting shipments of gaming notebooks and ultrabooks, while raising its average prices— overall notebook shipments have been dropped compared to the same period last year due to sluggish market demand. Smartphone sales remained flat compared to the first quarter last year. Market analysts forecast the second quarter would likely see the lowest sales this year, since the second quarter was usually a seasonally weak period of the year and component prices were expected to continue to rise. Asus said it expected demand would rebound near the end of the second quarter and hoped increased demand accompanied by the launch of new products would drive up revenue. In an interview with the Chinese-language Economic Daily News last week, Jerry Shen (沈振來) said 2017 was set to be a slow year for the global notebook industry, but the company has set ambitious goals to reach 40 percent revenue growth for its ultrabooks, gaming notebooks and 2in1 notebooks.

“These three niche items’ average selling prices and profits are all higher than the average (prices of notebooks) and will benefit the company’s revenue and profit performance, reducing the impact of a shrinking market,” Shen said.