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By | Paul Kunert 1st August 2013 14:52

Asus staggers into summer heatwave thirsty for sales, sweating profit

Stacking those tabs high causes bottom line wobble

The fire raging across the traditional PC industry has reached the door of Taiwanese titan Asus - which watched its sales and profits go up in smoke.

The world's fifth largest PC maker - which has done a better job than many of its peers in traversing the notebook market's shift to tabs - posted a decline in both the top and bottom lines during the second quarter of 2013.

According to unaudited figures, pre-tax income fell 18.5 per cent sequentially to NT$5.89bn (£128m) and was down 6.5 per cent on a year ago.

Sales also also fell steeply in terms of a quarter-on-quarter comparison, down 12.5 per cent from Q1 to NT$99.7bn, but moved up nearly six per cent on a year ago.

Shipments numbers for the second quarter from Gartner showed Asus sold 4.59 million units versus 5.7 million a year earlier, representing a decline of 20.5 per cent in a sector that fell 10.9 per cent.

In terms of fondleslabs, Asus was the third biggest player - behind Samsung and Apple - according to Canalys data with 3.2 million shipments but some 2 million of these were Nexus 7 devices built for Google.

It is worth bearing in mind that branded tablets have a lower average selling price than notebooks, and ones that are made under contract manufacturing will be even less profitable.

Asus did not comment. ®

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