Asustek Computer, seeing better-than-expected Eee Pad Transformer tablet PC sales and dropping Eee PC demand, is gradually reducing its Eee PC orders.

With shipments of its US$499 device continuing to rise, market watchers estimated shipments of Asustek's Eee Pad Transformer should reach 700,000-800,000 units in the third quarter and two million units in 2011, with its upcoming new quad-core Eee Pad Transformer, 7-inch Eee Pad MeMO 3D and Padfone in the fourth quarter.

The sources pointed out that netbooks such as Eee PC are no longer mainstream products in the IT market, although Asustek has strong performance in tablet PCs, with declining Eee PC orders plus unchanging notebook shipments, the company's profitability may be offset because of the losses from netbooks and gains in tablet PCs. The issue will also pose a great crisis for the company, the sources added.

Due to Asustek having relied on Eee PCs to push its total shipment volumes, while demand in Europe and the US is still unclear, Asustek's notebook market share in 2011 may not advance. Asustek has already reduced its notebook orders to Quanta Computer and Compal Electronics, and is observing Europe, the US and China markets' status for further action.

By: DocMemory
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