iPad Sales Chomp Into Asus' EeeXpectations

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News Posted: Thu, Aug 19 2010 12:47 PM
Much of the discussion on the iPad's purported disruptive effect on the computer industry has focused on devices like Amazon's Kindle. A recent announcement from Asus, however, indicates the iPad has hit the netbook industry hard. This news tops off a rather wretched Q2 for the company—total sales revenue was $2.29 billion, down 6.6 percent quarter-on-quarter, with gross margin down 1.5 percentage points to 11.9 percent and net profit down 17.9 percent.

The decline affected multiple product segments, including motherboards, netbooks, and notebooks. Asus was mum on the reason for declining sales in the first and third categories, but blamed the iPad's popularity for decreasing Eee PC sales. Netbook sales have typically surged in Q3, but Asus is now predicting sales will decline to 1.4 million units. In Q1 and Q2 the company shipped 1.6 and 1.5 million netbooks.


Asus refreshed its netbook lineup with new ION 2 products in Q2, but still lost sales overall.

Despite lower sales forecasts, Asus is pushing ahead with its Eee-brand product launches and expansions. A new 10", Windows 7 netbook built around the Atom N550 (dual-core, 1.5GHz) is scheduled to launch in September at $399, the 8.9" Eee Note (Marvell-built ARM processor) will launch in October ($199-299), a 12" Eee Pad that uses Intel's Arrandale and runs Windows Embedded Compact 7 should drop in December-January of 2010 ($1000), and a 10" Eee Pad that combines an NVIDIA Tegra processor and Google's Android OS should tip up in March of 2011 somewhere south of $399. 
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It's unfortunate because I think netbooks beat out iPads in most of the feature overlap, but this demonstrates, yet again, that consumers are willing to forego those considerations for a "sexier" device. So now ASUS has had to shift their product plans to focus on an iPad-like device which will probably do less and do it less well.

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Sounds like they need more focus groups, or maybe they need to pay more attention to HotHardware! :P

You cant keep watching the pot to see when the coins fall in, you need to get out and understand man, and how to make the coins so you can put them in there! Instead they just polish up the pot and make sure they advanced bowl systems. Kindovawaste dont ya think?

To many are focused on quantity over quality. You can have both!

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