Asustek Computer on July 7 reported consolidated revenues of NT$33.91 billion (US$1.13 billion) for June, decreasing on month by 7.97% but increasing on year by 0.37%, while its sales of 105.19 billion for the second quarter represented a five-quarter low with a sequential drop of 4.66%, and its sales of NT$215.53 billion for January-June, inched up on year by 0.82%.

Commenting on its weaker-than-expected performance in the second quarter, Asustek said that unstable smartphone component supply and weakening demand for tablets worldwide and notebooks in China were the main factors.

Asustek was originally expected to achieve at least 0-5% sequential growth in its second-quarter revenues.

Asustek shipped 4.9 million notebooks, including its T100 series; 5.2 million motherboards; 2.1 million tablets and 200,000 smartphone in the first quarter and was originally expected to ship 4.6 million notebooks, 5.2 million motherboards, 2.8 million tablets and 1.5 million smartphones in the second quarter. According to market watchers, the company shipped about one million smartphones in the second quarter.

Because of the company's limited smartphone shipments, Asustek was not a priority for its suppliers to gain key components such as panels, which in turn created shortages for the vendor and impacted its smartphone shipments even more.

However, tablet and notebook shipment drops were more serious issues for Asustek. If Asustek continues to suffer from tablet and notebook shipments decreases, the company's profits could be greatly impacted despite growth in smartphone shipments.