Seeing weakening demand for tablets, Asustek Computer believes its tablet sales are unlikely to be able to achieve growth in 2016 and is mainly aiming to maintain breakeven operations for the business. However, the company expects its notebook shipments to return to growth and will generate profit for the year.
Asustek shipped 5.9 million tablets in 2015 and is looking to ship 5-6 million units in 2016.
Since demand for pure tablets is weakening, related players are mainly pushing 2-in-1 devices to boost their sales in addition to inexpensive models. Meanwhile, Apple and Microsoft launched the iPad Pro and the Surface Pro 4 to expand into the mid-range to high-end segment.
For the first quarter, some market watchers expect Apple's iPad shipments to drop below 10 million units and Asustek to ship around one million tablets.
ODMs have also seen their orders for tablets weakening and, except the iPads, most other tablet models are only able to contribute thin profits. Many of China's white-box tablet players left the market after Intel stopped providing subsidies on its processors.
Source: Digitimes
