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ASUS lowering Eee PC shipments due to iPad

updated 10:00 am EDT, Mon August 16, 2010

ASUS drops netbook aims after iPad impact

The iPad's cooling effect on netbooks may have had its first clear evidence after an ASUS presentation at an investors' conference on Friday. Despite summer being the usual peak for Eee PC sales, CEO Jerry Shen dropped his company's netbook shipment estimates in the season to 1.4 million PCs, reportedly due to Apple's tablet. ASUS now expects to ship between seven and eight million Eee PCs through all of 2010.

Shen remained committed to the Eee PC line but also reassured investors that ASUS would compete with Apple in the tablet space through the Eee Pad line, which will now have Android as well as Windows 7 and Windows Embedded Compact 7 variants. The first of these won't start shipping until December at the earliest, however, and will give Apple a roughly eight month lead.

Apple has already outsold ASUS' combined spring and summer shipments with 3.27 million iPads having shipped worldwide. It's expected to only grow that number in the summer as it still faces seven- to 10-day shipping delays and retail shortages, even with increased production and wider availability.

The lowered forecasts partly mirror an overall cooling of netbook demand as the platform matures, but it may also reflect a growing dissatisfaction with the category compared to tablets like the iPad. Netbooks can run more software and cost less but are often subjectively slower due to the higher overhead of Windows and the relatively low power Atom chip. They also usually have shorter battery life while still measuring roughly twice as thick and heavy.



By Electronista Staff
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Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    -3

    Probably not due to the iPad...

    It had been claimed that nearly nobody would trade a netbook for an iPad because the iPad doesn't run Flash, have a desktop OS and doesn't come with a physical keyboard. Most likely the decline in netbook sales is due to people buying cheaper notebooks. Supposedly netbooks are the best mobile platform with the most bang for the buck and uses the much highly-praised full Windows 7 OS instead of a completely crippled mobile OS.

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    0

    Netbooks, we hardly knew ye

    Netbooks are a poor implementation of a solution to a real need.

    Traditional laptops, studies show people don't really move them around as much - they can move from bedroom to couch and back again, but people can't lug the thing around everywhere they go - at least they don't.

    The iPad vastly improves upon that experience - but again, the early word is, people aren't carrying them around everywhere they go, and they are making the rounds around someones house or apartment - but not the truly portable device.

    We have some truly portable devices - cell phones, Kindles, etc.

    I still think someone is going to crack this thing wide open. a 7" device, light as a paperback - at least will make it to the purse. Men may have to work out how they are going to carry it around.

    Apple has not done it yet - the lack of Flash is a problem, because you don't get the full internet experience - the size and weight are still too cumbersome.

    They are slaying the netbooks which were an even worse solution - but the ultimate answer, we haven't seen yet, because the iPad does not pass the 'carry everywhere' test.

  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007

    0

    @ iphonerulez

    "because the iPad doesn't run Flash, have a desktop OS and doesn't come with a physical keyboard."

    ER do you mean that because it doesn't run Windows, no one will want it??? I think Steve Ballmer said the same thing about the iPhone and how he liked his plan, he liked it alot..."
    And of course, the iPhone died and no one used them any more, we all swear our love for Windows mobile 6.5!.......... Right? Hundreds of millions of Windows phones every month, ruling the markplace.

    Just a thought there,
    en

  1. Foe Hammer

    Fresh-Faced Recruit

    Joined: Feb 2005

    -1

    @Eldernorm

    Me thinks thar be a wee touch o' sarcasm in iphonerulez's post ... arrrg, arrrg.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: Probably not

    Most likely the decline in netbook sales is due to people buying cheaper notebooks.

    That's what the analysts have said for the last 9 months.

    Supposedly netbooks are the best mobile platform with the most bang for the buck and uses the much highly-praised full Windows 7 OS instead of a completely crippled mobile OS.

    No one ever said such a thing. Netbooks market was trading speed and power for weight and size. Many used Linux rather than Windows. They were all about doing the basic things you'd use a computer for: Email, web, office-c***. No one bought them thinking "OMG! This 10" screen and Atom processor is going to rock the house, baby!"

    Oh, wait. I think you were trying for humor! Man, need to work at that.

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