Nexus 7 and Android Convertibles Drive Massive Asus Profit

rtfa-troll writes "The collapse of the PC market has had much discussion on Slashdot with a common opinion that, now that Apple is the largest personal computer manufacturer, a loss of sales combined with Apple's iPad will completely eliminate most of them. Now Asustek's most recent results show that there may be a way out for those that can move away from their standard markets. Concentrating on Android tablet devices, the Google Nexus 7, with a help from ASUS transformer tablets has driven the company to massive $230 million profits. Asus gross revenue also climbed 9 percent to around $3.8 billion. We have discussed related issues recently: Where companies like HTC have lost their focus on open Android devices and suffered from devastating collapses, ASUS has managed to differentiate it's tablets by providing the most open tablet experience possible via with Google's Nexus program and branding."

Comments

economics 101

[banbeans]

Build stuff people want to buy, make a profit

Re:economics 101

[Paradise Pete]

Build stuff people want to buy, make a profit

Especially if you can build at a profit something the contractor is willing to sell at a loss. That's a great market.

Re:economics 101

[Stuarticus]

I don't get it, where's the "step 2 - ???".

Re:economics 101

[Jane Q. Public]

Here's how PC makers can profit: build their machines using Apple-compatible hardware. Then people can (legally or not) make Hackintoshes out of them. It's a popular pastime and everybody wins -- even Apple, though they are loathe to admit it.

Re:economics 101

[Jane Q. Public]

Well... almost everybody. I know of at least one company that does lose with that formula... but who cares?

Desktop Android

[Andy Prough]

Desktop Android would steal 30% of the market for new laptop installations from MS within just a few years. If Asus wants to make monster profits, it would push for Desktop Android to get to market on its devices sooner rather than later.

Re:Desktop Android

[LordLucless]

because i don't do anything very complex

As many people don't do with their laptops. There's a reason the GP didn't say 100% of laptop sales in his post. You're obviously not one of the 30%

Re:Desktop Android

[squiggleslash]

I think we need a version of Android that has a UI and functionality suited to the desktop first. Oh, and apps that support it.

It wasn't until Jelly Bean (yes, I said JB - I've used HC and ICS, and I've used them on tablets) that Google finally figured out how to make a decent tablet UI. I think we're years away from an Android suitable for the desktop.

Also, a relatively fair question is why? If Android had a decent desktop UI, then wouldn't it be more convenient for most people to use their phones as a convergant device, using it as a phone on the road, and docking it with a monitor, pointing device, and keyboard when they're somewhere where portability isn't a requirement? The Android laptop seems... well, it seems like a stop-gap product.

Re:Gross revenue?

[Andy Prough]

They reported net profits of $230 million - up 43% from $160 million last year. Its in the engadget article.

Re:Innovation

[epyT-R]

a 'great' era to get all excited about.. or not.

1. they're all locked down in some way compared with the existing x86 desktop.
2. they're simplified to the point of uselessness for anyone who knows what they're doing (the vendors' competition).
3. the result of 1 and 2 is that they're consumer-hostile devices disguised as 'convenience' network-dependent platforms rather than empowering tools one can own and retain control over (ie trust). I see little of interest here for the same reasons I don't care about my cable box.

So far I've seen little innovation other than rehashes/dumbed down versions of existing software, just with ads or with 'subscription' hooks and simplified interfaces. The closest thing we have to open is android and even that's riddled with binary only drivers and userland. bleh..

oh and spare me the 'all users want is convenience so you should just learn to deal with it' posts.. just don't bother. I've heard it all before. There's no reason why they can't have their convenience along with the power to tinker if they choose to. It's just too bad that today's users don't understand that gaining advantage with powerful tools requires a learning curve. It's also too bad that I along with tomorrow's crop of 8 to 14yos won't have the opportunity to really learn to command tomorrow's computer technology without a licensed sandbox.

Re:Innovation

[houghi]

The people should not only want both the freedom to tinker AND the security of the walled garden. The people should DEMAND, after all:
People willing to trade their freedom for temporary security deserve neither and will lose both.

And rightly so

[siddesu]

I've been using a Nexus 7 since this July, and this is the best tablet of the lot I've tried -- and that includes an Ipad, an Ipad2, the original Galaxy Tab, the 10" galaxy, the galaxy note, a toshiba AT570/36F, several book readers and a couple of hi-end "china tablets". The balance of price, hw specs, OS and apps quality is just right. Finally there is a tablet offering that is worth buying.

ASUS makes darned fine tablets.

[symbolset]

I adore my TF101. It was killer gear when I bought it last summer and it still is. It gets used by somebody in the house every single day without fail, usually for hours. My grandson (4) takes pictures and videos with it when he's done playing Minecraft and I watch some of them when I have time. My youngest (6) uses it to video chat me up on oovoo. I take it on trips to watch mpeg4's on the plane and Netflix in the hotel. I use it for documentation on the fly, training materials and reference works. I've used it to elevator pitch and present 1080p slideshows in conference rooms. With it and Citrix, various remote desktop apps and the like I can use it to do anything a PC or server can do.

I'm in the biz so I have a house full of IT gear. 4 tablets, 6 servers, a dozen PCs, and more "smart" devices than anybody needs. These outnumber the humans at least 5 to one. The only tech thing that sees more use in my house than this ASUS tablet is the Comcast router that delivers the Internet to all the rest.

The only problem I have with this device is fighting for control of it. Money well spent.

At $200 for the 16GB Nexus 7 tablet from ASUS, there is a good chance there will be more than one of these under my tree on Christmas morning.

Don't call me an Apple hater. My review of the iPads I received on launch day is right there in my /. journal and none could call it anything but "effusive". But Apple's cathedral isn't for me when I can get stuff like this and the Nexus 10 instead.

Recommended.

Re:Gross revenue?

[Andy Prough]

Apple reported an $8.2 billion net profit for the quarter, not $15 billion. It was up 24% from $6.6 billion in the same quarter last year. http://www.apple.com/pr/library/2012/10/25Apple-Reports-Fourth-Quarter-Results.html

Openness? I do not think so

[tanveer1979]

I am an android user. Used to have a LG-P500, and then got a Galaxy note. My brother owns a Note Tablet(10")
I am a big supported of android, but I do not think the platform is really open.
For example, I recently bought a camera. I went to the merchant site, got it shipped to somebody in USA, and he will bring it to India.
However, if I want to do the same with Nexus 10, I cannot. Google simply says, sorry, devices not enabled in google play in your country.

So I would have to request the person in US to use their credit card to buy, if I want this device.
Software openness and app ecosystem is good, but I somehow do not like the way Google is selling this stuff.

Why not let it be like consumer electronics with multiple points of sale. Heck, google could sell it to anybody in the world, with that person bearing shipping charges.
I can do that with amazon, why not google

And guess what, rumour has it that these devices won't even be launched in India officially(just like the original Nexus were never launched here).

Re:Openness? I do not think so

[AlphaWolf_HK]

A lot of that has to do with legal liabilities that need to be sorted out. For example, what are the consequences of providing secure content delivery? In some countries, encryption is illegal, so they may have to make massive re-designs, and do other R&D, which may cost a lot. Along with that, they'll have to figure out if they'll even get a return on investment. Also they may face a public relations backlash for conforming to what the west considers to be oppressive laws.

I imagine that in many cases, they'll simply eat a loss, which is why they'll never market it there. I don't know about India in particular, but I imagine that if there was money to be made there, they would do so.

Re:Openness? I do not think so

[tanveer1979]

No, there are no restrictions in India. Most Android phones make it here(Samsung,LG,Garmin,Dell.....) But nexus never does. I think they do not want to cannibalize Samsung S series which are the largest selling phones in India in the high end market. So it has nothing to do with law, its just equivalent to using a walled garden.

Re:Openness? I do not think so

[LordLucless]

How does the vendor's storefront have anything to do with the openness of their product?

Largest personal computer manufacture?

[drkim]

I have to question the original post statement,

now that Apple is the largest personal computer manufacturer

I can only assume you are referring to market capitalization, and not actual computers sold.

As far as computers sold, it would be (third quarter 2012):

Worldwide:
Lenovo Group Ltd., 13.8 million shipped worldwide, 15.7 percent share
Hewlett-Packard Co., 13.6 million shipped, 15.5 percent
Dell Inc., 9.2 million, 10.5 percent
Acer Group, 8.6 million, 9.9 percent
AsusTek Computer Inc., 6.4 million, 7.3 percent
Others, 36.0 million, 41.1 percent.
Total: 87.5 million

United States:
Hewlett-Packard Co., 4.1 million shipped in U.S., 27.0 percent share
Dell Inc., 3.3 million, 21.4 percent
Apple Inc., 2.1 million, 13.6 percent
Lenovo Group Ltd., 1.4 million, 8.9 percent
Acer Group, 989,725, 6.5 percent.
Toshiba, 989,600, 6.5 percent
Others, 2.5 million, 16.2 percent.
Total: 15.3 million

Source: Gartner

Re:Largest personal computer manufacture?

[LodCrappo]

...a laptop for example is essentially the same as a tablet except that a laptop can run the software businesses have spent the last 30 years developing, and the tablet can't

ftfy

Re:Largest personal computer manufacture?

[LodCrappo]

Sorry, an article from appleinsider.com full of quotes from Tim Cook (and only Tim Cook, not a single outside analyst) doesn't hold much merit. It's marketing, not fact or news.

As for your other "source", it doesn't support your claims at all.

> Coulling believes that tablets will continue to pressure PC and notebook sales "in the short term,"

How exactly does an analyst predicting short term pressure on the PC market translate into the iPad eliminating the PC market? Where do you people come up with this crap?

Also interesting that both of your sources are from 10 months ago. Maybe that's because more recent numbers show a decline in iPad sales?

http://www.unwiredview.com/2012/10/26/apple-reports-q3-2012-results-iphone-sales-up-ipad-sales-down/

Re:Largest personal computer manufacture?

[edremy]

Of course the alternate version of that story

PHB: We need to add features X, Y and Z to our legacy inventory system
IT guy: The code is a giant pile of garbage, it would be cheaper and faster to rewrite the whole thing.
PHB: Ok, give it a try
(Six months pass)
PHB: How's the new inventory control system?
IT Guy: Going great- we just need some more time to get it functional
(Six months pass)
PHB: How's the new inventory control system? We really could use it
IT Guy: Almost done. We just need to make sure it supports the latest standards
(Six months pass)
PHB: Need that inventory control system guys...
IT Guy: Well, the standards have been in a bit of flux and when you're trying to put out really modern code you need to deal with that. By the way, we need a lot beefier server to handle the load, ok? It's a bit slow right now
(Six months pass)
PHB: Um, hello?
IT Guy: Really, it's almost done. It's going to be amazing! We're in the process of rearchtecting the main DB module to support Foobar 2.6 right now since Foobar 2.5 wasn't quite ready for prime time.
(Six months pass)
PHB: Look guys, we have to have this *now*. The legacy code can't run much longer without maintenance.
IT Guy: Well, here's my notice- I found a great new job programming cool Ruby code with a startup. I've put some comments in the code that should let you figure out what it does. It should build fine provided you only use the exact environment I specify and the front end works on a beta version of Chrome I downloaded. Go ahead and ship!

Huh?

[Robert Zenz]

The collapse of the PC market has had much discussion on Slashdot with a common opinion that, now that Apple is the largest personal computer manufacturer, a loss of sales combined with Apple's iPad will completely eliminate most of them.

The PC Market was collapsing? Apple is now the biggest PC manufacturer? We will all now use iPads instead a Desktop-PC? ... ... ... WHAT THE...

"As PC sales collapse"

[Lincolnshire Poacher]

All aboard the hyperbole bus!

Still 87.5 million PCs ( desktops and laptops ) shipped worldwide in Q3 2012. Yes, MILLIONS.

Some vendors saw a decline of 10% year-on-year. Painful, but that's not a collapse.

In comparison in Q3 2012 Apple shipped 17 million iPads.

So can we please stop saying that tablets have destroyed the PC market?

Re:"As PC sales collapse"

[tommasorepetti]

I keep hearing this phrase repeated in almost every article about tablets. So people have stopped doing work on computers? Technology journalism has really confused the computing industry with glitzy consumer trends. So long as people need to actually produce something there will always been a need for general-purpose computers. Tablets are, in every sense, devices for consuming, not creating. They are damned good at delivering content in a compelling way, and are a great way to store a technical library if you actually want to reference it while you are at work. But that work is being done on a computer. I would argue that those who say that a tablet can give them as much or more functionality than a tradition laptop or desktop were never really making use of the computer in the first place. You might add that you can just get a keyboard for your tablet. I would not disagree. I am just curious why you would buy an underpowered laptop that cannot even be used on your lap when there are conventional PC models that are a better value.

Re:Innovation

[CastrTroy]

Or your know, just buy two devices. These things are getting pretty cheap now. Get a Nexus 7 tablet for $200, use it for all your media consumption and facebooking. Get a $400 laptop, or a $600 desktop with gobs of memory and ample processing power, and use it for tinkering and programming whatever else. It's nice that we can tinker with computers without spending a fortune. I like tinkering as much as the next guy, but I also have a computer that I don't tinker with because I like to have it working and free of clutter when I actually want to get stuff done. At $400-$500, tablets are way too expensive for me. But at $200, it's more like buying an MP3 player, or a dvd/blueray player. Nobody cares that they can't hack their dvd player. They just want it to work and play movies

Re:Innovation

[Nerdfest]

Many people do have similar concerns about their DVD players, as region locking renders most of them useless. Ones that have configuration options exposed can play multiple regions. In this case it's the manufacturers telling you how you can use your media rather than your device, but the concept is similar.

Re:Innovation

[Lumpy]

WAH! You have been able to buy a 100% unlocked and not locked down tablet for years. I am betting you are just too cheap to buy one. Fujitsu Stylistic or one of the higher ASUS tablets that are X86 based. they work great and run linux or windows or whatever you want.

Stop whining and buy one. Yes they cost around $800-$1000 but who cares, it's 100% open and you can install whatever OS you want on it.. Even X86 android!

You can tinker if you choose to, by buying the right device.

Who the fuck wrote this summary

[LodCrappo]

"...a common opinion that, now that Apple is the largest personal computer manufacturer, a loss of sales combined with Apple's iPad will completely eliminate most of them."

How on earth can someone describe the opinion that Apple's tablet is going to "completely eliminate" most PC manufacturers as "common"? (!?!)

Only someone who ignores reality completely could come to such a misguided conclusion... let me guess.. big Apple fan?

News flash: nearly 90 million PCs sold in Q3. 8 times the number of tablets sold. The PC is already commonplace and suffers from it's own success in that they have become so reliable and so capable that upgrades and replacements just aren't that common. The tablet is brand new and new models with compelling improvements come out every few months. Yet still we see massively more PCs sold than tablets.

A single manufacturer of tablets is going to completely eliminate the PC industry?

Sorry, no.

Re:Innovation

[bfandreas]

I agree.
the major driver for PC sales in the past has been obsolescence. Something new popped up that you absolutely wanted but your machine couldn't handle it. Most of the time this involved replacing CPU, Graphics card, Mainboard and possibly RAM. Basically a totally new machine.
Last year I bought an i7 based system with 16gb RAM, SSD and a Geforce 580. I also use this machine for development and have to run an awful lot on it. It is BORED stiff most of the time. CPUs have been fast enough for some time. Graphic cards don't need replacing as often since PC gaming is still held back by the current console generation. Unless of course you want to drive multiple screens at monster resolutions...

A NORMAL user who does some text processing, web browsing, Youtube and stuff can easily live with a 5 year old machine. Windows 8 might be a reason to upgrade.

So what now? Utility? Form factor? I am SERIOUSLY considering to get one of those Windows 8(not RT) Transformers once all the inevitable kinks got ironed out. And I WILL ditch my laptop for it. Because a tablet/laptop hybrid is exactly what I'm interested in. I've got a Transformer Prime which is a brilliant little machine. But now, after living with Android for the last 3 years I'm coming more and more to the conclusion that it simply sucks. Especially web browsing is atrocious. Also for some things I'd need a little bit more available performance. I don't know if the Prime is underpowered(I'm under the impression it is one of the fastes Android things out there) or if Android is the limiting factor. And I suspect it is the latter.

tl;dr:
Nobody replaces PCs at the rate they used to. And if they get replaced then it is rather for form factor than more power.

Re:Innovation

[LodCrappo]

While I agree with the sentiment mostly, DEMANDing security is not in the spirit of that quote. Freedom comes with responsibility, not security. You really cannot have freedom in a perfectly safe system, that is precisely why the quote talks about trading one for the other. The very power and flexibility that lets you experiment also lets you do stupid things that compromise security. Rather than demanding things, I think it's high time we accept that personal education and personal responsibility are the only way to provide both freedom and the safety that a walled garden claims to provide.

Re:Innovation

[marcello_dl]

A lot of people didn't worry about committing their work to closed document formats in the nineties too, and people are still paying for it.

Re:Innovation

[tepples]

Or your know, just buy two devices.

And carry them both. And keep both of them charged. And buy data plans for both. In addition, a lot of people don't have the means to lawfully earn money to buy multiple devices, especially those who have not yet graduated.

Get a $400 laptop, or a $600 desktop with gobs of memory and ample processing power

Once 90 percent of people have decided that they don't need more than "consumption and facebooking", how long are the economies of scale that allow these laptops and desktops to cost under $1000 going to remain in effect?

Re:Innovation

[Dusty101]

Nokia's N-series mini tablets (& N900 phone) offered a hidden-but-documented "red pill/blue pill" option, so that knowledgeable users could effectively choose to switch off the consumer failsafes & tinker, secure in the knowledge that if they broke stuff while experimenting, they were on their own:

http://wiki.maemo.org/Red_Pill_mode

This gave the benefits of both a safe, supported "appliance" experience for Muggles, & a hackable (in the old-school sense) environment for the techie types. I think it's a shame that this didn't become standard practice for tablets & smartphones.

These days, to do the "red pill" kind of thing, one usually has to resort to Jailbreaking/rooting gear via exploits, & I think the world as a whole is generally poorer for it. Sadly, even the Nokia of today is not the Nokia of old. I still yearn for a manufacturer/customer relationship that's collaborative, rather than confrontational.

Caveat: like many others, I did eventually succumb & buy a couple of Apple mobile devices (phone, iPad) a few years ago in order to benefit from the much more stable ecosystem (I was already using their truly excellent laptops at that point, & Android was still very rough), so it could certainly be argued that I eventually voted with the herd (rather than the Hurd, har har). However, I only bought them after I definitely knew I could Jailbreak them, and I won't run any version of iOS that I can't (added bonus: no Apple Maps fiasco experience for me).

Re:Gross revenue?

[Tough Love]

Pffft... with that, Apple could barely construct and equip a nuclear aircraft carrier!

Oh yeah, you're right, and after their troll legal abuse strategy fails that's exactly what Apple will need to stop Android. Tim better start saving up.