ASUS Profits Crash 73% As PC & Peripheral Sales Flop
Struggling PC brand ASUS who trade as Asustek has reported a loss of $130M for the quarter, the Company is also a major supplier of PC Peripherals in Australia.
A major contributor to the losses was a decision by the Company that they could compete in the PC market up against the likes of Huawei in China and Apple and Samsung in other markets.
A Taiwanese Company ASUS is heading the same way as BenQ who also fancied their chances in the smartphone market only to end up having to sell offices and property to prevent the Company from going bankrupt.
The company’s net profits for the 2018 financial year ending in December 2018 went down 73% year on year.
The company’s PC business is expected to see a revenue decline of between 5-10% sequentially and its motherboard/graphics card business is expected to fall 5% drop in the first quarter of 2019.
A major contributor has been Intel’s CPU shortages and US-China trade tensions.
In Australia ASUS was at one time trying to sell a $2,600 black and gold notebook despite having no brand traction with consumers and limited distribution. The device ended up on sale for $1,200.