Asustek Computer, at a product launch conference in China, pointed out that notebook demand in the China market was weak in the second quarter, but as the IT market will enter the peak season in the third quarter, demand is expected to rise, but inflation problems in China may still have some impact on demand, according to company CFO David Chang.
Asustek's share in China's notebook market in 2010 was about 13% and will reach 15% in 2011. After 2011, the company expects its market share will rise 1pp per year, Chang noted.
Although market watchers are turning conservative toward notebook demand in the second half, Chang pointed out that the company has no plans to reduce its shipment target. Asustek shipped about 5.9 million notebooks in the first half and should have no problem achieving its goal of shipping 14 million units in 2011. The company also shipped more than 400,000 tablet PCs in the first half and should be able to reach its goal of two million units for 2011.
After July, Asustek is set to launch its low-price Eee PC X101 netbook, pairing Intel's Atom 435 processor with MeeGo operating system for a price of US$199, while Windows 7 models will be priced at US$310-350. In September, Asustek will also launch netbooks using Intel's latest Cedar Trail-M platform with its annual netbook shipments target still set at six million units.
In September, Asustek will also launch its UX21 with two screen size options, 11.6-inch and 13-inch, using Intel's Ultrabook concept. Intel estimates that its Ultrabook concept will be adopted for 40% of global consumer notebooks at the end of 2012, with Asustek also estimating that its UX series will account for 3-5% of its total notebook shipments in 2012.
In additional news, Acer's action of dumping notebook inventory in Europe has already caused a drop of 5% in the ASP of notebooks in Europe and Acer is still able to maintain its lead with its strong push in volumes.
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