Under double pressure, Asustek, a big PC company, expects to keep losing money in the first half of the year.

CTOnews.com March 13 news, according to Taiwan's Economic Daily reported that PC giant Asustek unexpectedly suffered losses in the fourth quarter of last year. Under the dual pressure of weak terminal demand and over-conservative procurement by channel dealers, Asustek admitted that the first quarter of this year would be the trough of annual operation, and predicted that there would still be opportunities for losses in the first and second quarters of this year.

At the law conference held on March 10, Asustek and CEO Xu Xianyue pointed out that at present, terminal demand is weak, which reflects the weak consumer confidence of consumers and enterprises, followed by the rapid convergence of purchasing and inventory volume among channel dealers, which is in fact overly conservative, so it is a double pressure and risk at present.

From a financial point of view, Asustek expects revenue to fall 15 per cent in the first quarter of this year compared with the previous quarter. Under revenue convergence and inventory control, a small loss is expected in the first quarter. In terms of products in the first quarter, Asustek expects PC to decrease by 15-20 per cent month-on-month and zero components (mainly board business) by 5-10 per cent month-on-month.

Looking forward to the second quarter, due to the expected improvement in overall terminal demand and the adjustment of currency partner operations, Asustek expects revenue to grow by 10% month-on-month, but there is still a chance to make a loss, but the profit improvement will be more pronounced.

Financial data show that Asustek's cumulative revenue in 2022 was NT $537.191 billion (CTOnews.com note: currently about 121.405 billion yuan), an increase of 0.4 per cent year-on-year.