Asustek upbeat about PC sales in 2Q, 2H21
Monica Chen, Hsinchu; Joseph Tsai, DIGITIMES
Asustek Computer is upbeat about its PC sales in the second quarter and the second half of 2021, judging from clear order visibility through the end of the year, according to Asustek co-CEO SY Hsu.
In the first quarter, Asustek’s PC revenues increased 70% on year, while those of components including motherboards and graphics cards went up 80%. Within the PC revenues, those of conventional PCs picked up over 50%, gaming PCs over 75% and enterprise PCs including Chromebooks up more than 170%, Hsu said.
Hsu pointed out that Asustek’s ROG Phone series is having the largest market share in terms of shipments in China’s gaming smartphone segment and is leading its competitors in the price segment of CNY3,500 (US$545).
Asustek expects shipments of its latest ROG Phone 5 to arrive at around 400,000 units in 2021 and is considering releasing more price-friendly gaming smartphones for the segments from CNY1,999 to CNY3,500, as competitors have begun launching devices priced starting CNY1,999.
The company expects PC revenues to grow 5-10% sequentially and 20-30% on year in the second quarter, while sales of components will dip 5-10% sequentially, due to seasonality, but will still increase 30% on year.
Despite the strong order visibility, Asustek will still see its overall shipment results in 2021 affected by the extent of vaccination against COVID-19 and by component shortages, while order visibility for 2022 is still unclear, Hsu added.
Asustek has also accepted its upstream partners’ price-hike demand and will increase its product prices to reflect the extra expenses. Asustek said it has already obtained its retailer partners’ consent to the price hikes.
Asustek reported consolidated revenues of NT$108.1 billion (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.