February 10, 2018 2:10 am JST

Asus reports profit drop for 2017 on Chinese competition

Taiwanese computer maker also took a hit from high memory prices

KENSAKU IHARA, Nikkei staff writer

TAIPEI -- Taiwan's Asustek Computer, known as Asus, said Friday that group net profit for the year ended in December fell 19% to 15.5 billion New Taiwan dollars ($528 million).

Intensifying competition from Chinese rivals and surging parts prices dealt a blow to the company's earnings, Chief Financial Officer Nick Wu said during an earnings briefing here.

Sales declined 8% to NT$392.8 billion. Personal computers with beefed up image-processing capability for better video game playing saw sales soar 20%. But Asus also faced weaker sales of its ZenFone-brand smartphones.

The price of NAND memory chips and other parts rose sharply in the year, but the company was unable to pass the higher costs on to product prices. As a result, operating profit plunged 28% to NT$12.5 billion.

The Taipei-based company intends to turn the tide this year by releasing new smartphones in April, earlier than usual, and taking other steps.

Asia300

ASUSTek Computer, Inc.

Taiwan

Market(Ticker): TAI(2357)
Sector:
Industry:
Electronic Technology
Computer Processing Hardware
Market cap(USD): 6,959.22M
Shares: 742.76M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

Resubscribe now to continue reading.
BEST OFFER:
Only US$ 9.99 per month for a full-year subscription

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.