Asustek Admits iPad Success: Apple iPad Sales Cannibalize Sales of Eee

Asus Lowers Eee PC Shipments amid iPad Success

by Anton Shilov
08/17/2010 | 03:15 PM

Asustek Computer, one of the largest makers of netbooks on the globe, has reportedly said that shipments of its Eee-branded personal computers in the third quarter would be lower than initially estimated due to upticking sales of slates, particularly Apple iPad.

 

According to a report by DigiTimes, which cites Asustek Computer's executives, the company saw sales of its netbooks in the second quarter below expectations primarily due to rivalry from Apple's iPad. As a consequence, Asus reportedly adjusted its target shipments for the third quarter, the traditional peak sales period, to 1.4 million units, according to company president and chief executive officer Jerry Shen.

The remark from a high-ranking executives from Asustek Computer shows that the market of ultra-portable and ultra low-cost personal computers (ULCPCs) is splitting. There are consumers demanding full compatibility with Windows-based productivity applications and other programs despite of low performance on an Intel Atom-based netbook. There is a category of customers that only wants to use email and other basic services as well as to consume content.

Asustek, according to the media report, did not cite economic weakness in Europe or China for the drop in Eee PC sales.

Given the fact that Asus had to decrease expectations for sales of its successful Eee PC lineup, it is not a surprise that the company, which is the world largest maker of computer motherboards as well as notebooks, plans to release three slate-type PCs in the coming quarters.