ASUS Sales Booming, Big Price Rises Coming Due To Component Shortages
Asustek Computer better known as ASUS in Australia has reported a 70% increase in revenue during the last quarter.
Well known for their gaming and business notebooks the Company has also seen an 80% increase in sales of their motherboards and graphics cards, Chromebook’s sales are up more than 170% claims executives.
Asustek co-CEO SY Hsu claims that one of the biggest growth products is their ROG Phone series which is highly popular with gamers.
Asustek expects shipments of its latest ROG Phone 5 to be around 400,000 units in 2021 and is considering releasing more price-friendly gaming smartphones for markets such as Australia.
The company expects PC revenues to grow 5-10% sequentially and 20-30% on year in the second quarter, while sales of components dipping 5-10% due to seasonality but will still increase 30% on year.
Despite strong order visibility, Asustek is still concerned about the effects of the COVID-19 pandemic on the market and the roll out of vaccination against COVID-19 also set to impact the Company going forward are component shortages, while order visibility for 2022 is still unclear, Hsu claimed.
The Company is also set to raise prices due to price-hike demands from their suppliers.
Asustek said it has already obtained retailer support for the price rises.
Asustek reported consolidated revenues of US$3.83 billion for its brand business for the first quarter, up 69% on year, while net profits were NT$9.79 billion, down 1% sequentially, but up more than 10 folds on year, with gross margin reaching 22%, up 4.3pp sequentially and 5.6pp on year.