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Asus financials show tablets killing netbooks

Taiwanese gadget vendor Asus has posted its most recent financial results, showing the first genuine evidence that tablets are cannibalising netbook sales.

According to figures revealed this morning by chief financial officer David Chang, the company's forecast for six million Eee PC netbooks shipped by the end of the financial year is having to be revised downwards by as much as two million units, as sales fail to pick up in the way the company had hoped.

Investors were advised not to worry, however. While the Eee PC arm is failing to perform, customers are flocking in droves to the Eee Pad and in particular the Transformer. Combining the best of a tablet and a netbook, with Android 3.2 'Honeycomb' at the helm and an optional docking station featuring an additional battery and full-size hardware keyboard - buyers are apparently looking towards the Transformer for their portable computing needs.

That's good news for Asus and its investors: while an Eee PC might sell for between £200 and £300, the Eee Pad Transformer starts at around £350, which translates into an increase in revenue of 38 per cent year on year.

Sadly, even the Transformer isn't quite living up to expectations: although the devices are selling at a rate of around 300,000 a month, Chang has admitted that he was hoping to see a figure closer to 500,000. With the company's factories working flat-out to meet orders, that would appear to an issue of supply rather than demand.

The remainder of the company's figures held little surprise, aside from an uplift in sales of full-size laptops which has helped the company generate around £670 million in revenue in July alone.