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Asustek ready to outperform peers with Win 8: analyst

Asustek ready to outperform peers with Win 8: analyst

Taipei, Oct. 28 (CNA) Taiwan's Asustek Computer Inc. is well-positioned to capture growth opportunities from Microsoft Corp.'s new Windows 8 operating system, Japanese brokerage Nomura Holdings Inc. said recently in a report. "Among PC OEMs, Asustek is our preferred name given its progress in the tablet market, continued growth in notebook space with market share gains and solid margin performance," Eve Jung, a Taipei-based analyst at Nomura, said in the report. "We think Asustek's earnings for the third quarter of 2012 are likely to beat consensus on the back of solid sales, margin performance and higher-than-expected non-operating income," she said. With these in mind, Nomura kept its "buy" rating on Asustek and a target price of NT$350 (US$12). At an Oct. 24 press conference in Taipei, Asustek unveiled six new product series based on Windows 8, including super-thin notebooks dubbed "ultrabooks" by U.S. chip maker Intel Corp. From the new product launch, Nomura saw Asustek leverage its strong research capability and use different components compared with its peers to achieve cost reductions. It also has aggressive plans to penetrate into the entry-level ultrabook segment. This should help Asustek retain its front runner advantage in the ultrabook area for further market share gains in the notebook market, Jung said. For Windows 8 tablets, Asustek launched the VivoTab RT using chipsets licensed by British chip designer ARM Holdings Plc to tap into the high-end segment. The company also unveiled the VivoTab Smart as a lower-priced model using Intel's chips and plastic casings. "Leveraging its economies of scale and strong research and development capability in the tablet segment, we think Asustek should be the major beneficiary from new growth opportunities of Windows 8 tablets," Jung added. She expected Windows 8 tablets to account for 17 percent of the global tablet market in 2013 and 24 percent in 2014, up from only 6 percent this year. Research firm Gartner Inc. expects worldwide Windows tablet shipments to grow from 2.33 million units in 2012 to 9.35 million units next year, and sees the operating system's market share expanding to 5 percent from 2 percent during the period. Windows tablet shipments are estimated to touch 34.4 million units and market share is expected to rise to 9 percent by 2016, Gartner added. This also implied that Windows would remain a niche segment in the tablet market, as Apple Inc.'s iOS was expected to continue outperforming other players and capture a 58 percent market share in 2012, 61 percent in 2013 and 60 percent in 2016, the U.S. researcher said. Asustek shares fell 0.16 percent to NT$309.5 at the close of trading in Taipei Friday. The Taiwanese PC maker will hold an investor conference on Oct. 30 in Taipei. (By Jeffrey Wu)


Updated : 2021-07-27 23:55 GMT+08:00