Asustek Computer, originally expected to enjoy sequential growth in notebook shipments and a slight on-quarter drop in tablet shipments in the second quarter, has adjusted both forecasts to a drop of 10%, while its consolidated revenues for the second quarter are also expected to drop from NT$105.2 billion (US$3.53 billion) in the first quarter to only NT$90-95 billion, down from the previous forecast of staying flat sequentially.

　　The changes in forecasts are due to weak notebook and tablet demand in both April and May.

　　Asustek also announced consolidated revenues of NT$448.68 billion for 2012, up 17% on year, with net profits reaching NT$22.42 billion, up 35% on year and earnings per share (EPS) at NT$29.79. Asustek will also distribute dividends of NT$19 in cash.

　　Although some market watchers have turned conservative about the IT industry's future, company chairman Jonney Shih is still confident about the company's overall performance and believe its sales will rebound in the third quarter after release of its new products.

　　Company CFO David Chang also pointed out that the company's sales in the fourth quarter will stay flat of grow slightly on quarter, helping the company's revenue ratio for the first and second halves of 2013 to reach 44:56. Asustek maintained its annual shipment forecasts and expects to ship 20-25 million notebooks, 12 million tablets and 22 million motherboards in 2013.

　　Currently, tablets contribute about 15-20% of Asustek's revenues and the percentage is expected to rise to over 20% in the third quarter and gradually approach 30% as the company's advantages over its competitors will allow it to have a faster pace in releasing new products, company CEO Jerry Shen said.

　　Shih noted that tablets have already entered the stage of low price competition and their product life cycles will also become shorter than before. To survive from the competition, in addition to the pricing, Asustek will also integrate added value to their products.

　　Some market watchers pointed out that Google's second-generation Nexus 7 is also expected to benefit Asustek's tablet shipments in the third quarter, pushing its overall volume with additional 2.5 million units.