Asus Blames iPad for Lackluster Netbook Sales

Paul Lilly

The big question mark surrounding tablets is whether or not this emerging market will eat into netbook sales, or if the two segments can co-exist. If Asus' recent netbook performance is any indication, we may have our answer.

Asus only managed to sell 1.5 million netbooks in the second quarter, a drop of 100,000 units over the first quarter and short of the company's expectations. As a result, Asus president and CEO Jerry Shen recently told investors that Asus had to downward adjust its target shipments for the third quarter, which he blames on competition from Apple's iPad.

It's been somewhat of a rough year all around for Asus. Along with disappointing netbook sales, decreased shipments of motherboards and traditional notebooks have taken a toll on the company's financial performance, which declined during the second quarter.

What's interesting about this is that the tablet game is largely a one-man show, but will soon become crowded as 2010 comes to a close. Is this the beginning of a trend?

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