By Eva Dou
Taiwan's Asustek Computer Inc. (2357.TW) expects to almost
double its shipments of Android tablets next year, part of an
aggressive goal to come second only to Apple Inc. (AAPL)in combined
notebook and tablet shipments in 2013.
But the personal computer maker, the world's fifth-largest in
terms of shipments and currently fourth place in the tablet market,
has a lower growth outlook for its Windows-powered devices.
Asustek has made a strong push this year into mobile computing,
selling the Nexus 7 tablet in partnership with Google Inc. (GOOG)
as well as the Vivobook, a Windows 8 touchscreen notebook.
"Sales of our seven-inch tablets will contribute significantly
to our shipments next year," Chief Financial Officer David Chang
said in a phone interview on Monday. "The world-wide economic
recovery will provide some help, too."
Asustek expects to ship 12 million Android tablets in 2013, up
90.5% from 6.3 million in 2012. Its shipments of Windows-based
notebooks or tablets are expected to hit 24 million units in 2013,
a slower growth of 7.6% from 22.3 million this year.
Mr. Chang said Asustek is aiming to grab the No. 2 spot behind
Apple in combined shipments of notebooks and tablets next year, a
goal that analysts said is aggressive but possible. In the third
quarter, Asustek was in fourth place in tablet shipments, behind
Apple, Samsung Electronics Co. and Amazon.com Inc., according to
data research firm IDC.
Analysts said it's uncertain whether Asustek will be able to
maintain this year's growth momentum that was in part fueled by
sales of the Nexus 7, which was attractively priced at $199 each.
Asustek's tablet sales more than doubled when the Nexus 7 hit the
market in July, but Google has yet to announce another tie-up with
the Taiwanese company.
"The Android tablets also don't generate as much profit as
Windows-based devices, despite their higher shipments," noted KGI
Securities analyst Angela Hsiang.
Asustek posted net profit for the three months ended Sept. 30 of
6.71 billion New Taiwan dollars (US$229.1 million), up 43% from the
year earlier NT$4.68 billion, and its largest quarterly earnings in
more than four years.
Analysts said Asustek's 2013 notebook target, which includes
Windows 8 tablet and hybrid devices, comes in around or slightly
below street expectations, suggesting Microsoft's new touch-based
operating system won't bring a quick turnaround for the industry.
Asustek's Mr. Chang said demand for Windows 8 devices would likely
pick up "relatively slowly."
"It goes to show that the overall notebook market demand is not
as strong as originally expected," said Yuanta Securities Co.
analyst Vincent Chen.
The tablet market, however, is growing rapidly, with IDC
forecasting worldwide tablet shipments to grow 41.7% to 165.9
million next year from 117.1 million this year. IDC expects Apple's
tablets to make up 60.7% of those shipments, while Android-based
tablets will account for 32.7% and Windows 6.0%.
After re-entering the phone market this year with its PadFone
and PadFone 2, Asustek expects sales of its phones to reach one
million units next year.
Write to Eva Dou at eva.dou@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires