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Wednesday, May 11, 2016
Asustek Profit Falls, Plans Expansion To VR, AR And IoT Products

Asustek Computer Inc. has posted its smallest quarterly net profit for the past year mainly due to slow tablet sales.

Net profit dropped 8 percent to NT$4.16 billion (US$127.89 million) during the quarter ending March 31, compared with NT$4.54 billion in the previous quarter.

However, on an annual basis, net income climbed 13 percent from NT$3.68 billion.

As the slump in demand for tablets is expected to continue, Asustek forecast that its second-quarter revenue would contract by between 9 and 14 percent to between NT$95 billion and NT$100 billion, compared with last quarter’s NT$110.5 billion.

The PC business, which accounted for 66 percent of the company’s revenue last quarter, is expected to be flat, or grow about 5 percent year-on-year in the current quarter, Asustek said.

Asustek said it has tapped into new product areas such as virtual reality (VR) headsets, augmented reality (AR), robotics, as well as Internet of things (IoT) for smart homes, cars and wearables.

The first VR headsets for mobile phones are due to hit the market next quarter, while VR headsets for PCs and AR headsets for mobile phones are to arrive at next year’s Consumer Electronics Show (CES) in Las Vegas, based on the firm’s timetable.

For the Computex Taipei trade show, which is to run from May 31 to June 4, Asustek plans to showcase its first service robotics, as well as new mobile phones, tablets and PCs before they hit store shelves in July.

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