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Asus Reduces Netbook Sales Expectations Because of Apple iPad

Illustration for article titled Asus Reduces Netbook Sales Expectations Because of Apple iPad

Asustek—perhaps the poster child of the netbook world—is cutting down netbook shipments for their strongest quarter. Their reason: Apple's iPad is eating their market. They are not giving up, and will "step into the tablet PC segment."

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According to CEO Jerry Shen, the company has reduced its unit target to 1.4 million for the third quarter, which is traditionally its peak sales period. [Digitimes]

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DISCUSSION

One of the reasons Asus is cuttin' back is that there are still too many cheap ($179) refurbed netbooks out there for them to make a profit, and they ain't gonna foul the pond with more of 'em. There were too many units shipped out with Vista and returned due to the incredibly high power & memory requirements of said OS and were simply useless with the meager 1gig of ram and the puny processor. When they were refurbed and re-sold w/XP they ran quite well (I've bough 5- 2 for us and the rest as gifts), and even the ones w/7 on 'em do OK. The upside for the consumer is you can still get a toy that outperforms the iPad for less than half the price with an OS that will fit in with 90% of the marketplace. The downside is that those inexpensive netbooks are getting harder to find. The pretty iPad is nice but does not do one tenth what a loaded netbook can do and with very few cheap and easy mods, the netbook becomes quite a powerful LITTLE laptop.