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Asustek expects sequential down in 1Q17 revenues

Asustek Computer expects first-quarter 2017 revenues from the PC product line to decrease 15-20% on quarter, those from smartphones, tablets and other mobile devices to slip 10-15% and those from DIY motherboards, graphics cards and components to drop 0-5% due to off-season effects, said company CEO Jerry Shen at a February 15 investor conference.

The PC product line (mostly notebooks and desktops) accounted for 63% of fourth-quarter 2016 own-brand sales revenues; smartphones, tablets and other mobile devices for 20%; DIY motherboards, graphics cards and components for 14%; IoT devices and services for 3%. Among regional markets, Asia accounted for 39% of the revenues, Europe for 39%, North America and Latin America for 22%.

Notebooks consisting of ZenBook series ultra-slim models, gaming devices and 2-in-1 PCs took up 40% of own-brand revenues in 2016 and the revenue proportion is expected to rise to over 50% in 2017. Revenues for ZenBook, gaming notebooks and 2-in-1 models in 2016 grew 40%, 50% and 10% respectively on year and those in 2017 are expected to increase 40% each.

Due to short supply of display panels, memory and other components, Asustek will defer launch of the latest smartphone series ZenFone 4 until June or July 2017. However, Asustek launched two new smartphone models, ZenFone 3 Zoom and ZenFone Max, in January 2017 and will launch ZenFone 3 Go in late February and ZenFone AR in March.