Q&A- 2Q 2011 Analyst Conference
Q: Please comment on the shipment of 2011 and the reason that OPM improved
A: The shipment of regular NB in 1H 2011 grew only 8%YoY as the macro economy
fluctuated dramatically. In the meanwhile, however, Asus shipment increased by 23%
YoY. With product innovation and better cost control, Asus keeps improving operating
profitability and outperform to the industry. Going forward, the company will enhance
its core competence by focusing on product design and innovation, making progress
in operating scale and market share.
Q: Please share your view on Ultrabook.
A: It is believed that Ultrabook will create innovation for NB industry by making
breakthrough in product mobility, user experience, and product image. Not only
owning good design capability and RD culture, Asus but also remains close and
steady relationship with key venders. Therefore, we are confident that we could keep
leading the market in terms of product innovation.
Asus is going to be one of the leading brands to launch a premium model of Ultrabook
in 4Q, 2011. The product is expected to contribute better ASP and margin. In the
beginning stage, the majority of shipment should be premium models. After the launch
of new CPU platform in 2012, mainstream Ultrabooks would hit the market. The
overall shipment shall ramp up obviously then.
Q: Please discuss the high inventory in the end of 2Q and the current inventory
level of Asus now.
A: The reason of high inventory in 2Q is that the company prepared for the high
season in 3Q. We believe that the inventory now is under control as sales in July
jumped largely as expected.
Asus would closely pay attention on the end demand of market, especially in
European market where price competition is tense. While channel inventory of peers
is relatively high, the company still remains healthy inventory level. (2-4 weeks)