Monday, February 2nd 2009

ASUS to Cut Inventories Up To 30% in Q1'09

Weakening demand, deteriorating economy and product launches by the dozen have led to ASUS, one of the largest manufacturers of computer hardware to suffer overstocked inventories. A local daily in Taiwan in a recent report suggests that the company is planning to reduce its inventories by as much as 30% in Q1 2009. ASUS currently holds US $1.33 billion-worth inventory, which it plans to reduce to $1.03 billion.

In the process, the company may incur losses amounting of around 20% amounting to roughly $35.5 million for the fourth quarter last year due to depreciation, the paper noted. Inventory levels of motherboards and graphics cards by ASUS may be sized down to the levels of 8~10 weeks, with those of pre-built PCs expected to be lower. The company also reduce its operating costs by 10%. In the wake turbulent economic weather the world over, ASUS will be employing new strategies to face fluctuations in exchange rates.Source: DigiTimes
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4 Comments on ASUS to Cut Inventories Up To 30% in Q1'09

#1
Sasqui
Wonder if this will equate to any fire-sale pricing?
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#2
Keiki
by: Sasqui
Wonder if this will equate to any fire-sale pricing?
+1

And give Canada some love Asus
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#3
HELLSPAWNPR
Cool, hope MB get a nice price drop :)
Posted on Reply
#4
thoughtdisorder
Not focusing on inventory turns can devastate your company financially. About time they caught on with $1.3 billion in inventory.:rolleyes:

Hopefully this means great prices for consumers very shortly! :)
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