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.
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.