Asustek Favors Netbook Market Amid Tablet Frenzy

Jan 19 (Reuters) – Taiwan’s Asustek Computer Inc
(TW:2357) will stick to its core netbook PC products, it said on
Wednesday, even as the rising popularity of tablet PCs sparked by
Apple Inc’s (NASDAQ:AAPL) iPad threatens to cut into netbook sales.

The company expects sales of netbooks will be flat this year,
but revenue will rise as it brings more high-end products to the
market. Like most of its rivals, however, it is also joining the
tablet market with its own model.

"Different clients have different demand, we still see
potential in the netbook market," said Kevin Lin, a general
manager of Asustek, at a netbook launch event.

Asustek targets sales of 6 million netbooks this year, giving
it around a 20 percent global market share. It said last month it
shipped 6 million units in 2010, and expects a double-digit
market share for its non-Apple platform tablet PC

"This is the right strategy for Asustek because the netbook
is a sizeable market and it is not going to disappear," said
Tracy Tsai, an analyst of Gartner Research.

She said many consumers own more than two computer devices
nowadays and Asustek could not forgo the netbook market for
tablets.

Asustek said it will launch its first tablet model for
Taiwan, using Google’s GOOG.L Android 3.0 platform, as early as
March.

The company has already started selling larger-sized tablet
PCs in the U.S. and Europe.
(Reporting by Clare Jim; Editing by Jonathan Standing)