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Nexus 7 and Android Convertibles Drive Massive Asus Profit 232

Posted by Unknown Lamer
from the king-of-the-hill dept.
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."
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Nexus 7 and Android Convertibles Drive Massive Asus Profit

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  • economics 101 (Score:5, Insightful)

    by banbeans (122547) on Wednesday October 31, 2012 @03:21AM (#41827677)

    Build stuff people want to buy, make a profit

  • Desktop Android (Score:5, Interesting)

    by Andy Prough (2730467) on Wednesday October 31, 2012 @03:34AM (#41827699)
    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.
    • Well, if you take a look, you'll find plenty of Android netbooks to buy.

      They aren't selling like water, but they are selling. That 30% figure is well within reason, but it will take some time to achieve. Android is still fringe.

      • by bazorg (911295)

        What the guy said was "Android Desktop" and if taken literally, I think he's got a point. The smartphone and tablet boom has shown (to me at least) that a) people are actually OK with using new UIs; b) people dislike the complexity that comes with normal PCs and will accept some compromise.

        If people are willing to use an ugly keyboard add-on with their iPad; if they are OK with web-based office applications; if they are OK with beta-quality apps and adverts on their screen... I think some would be fine with

    • 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

      • It wasn't until Jelly Bean [...] that Google finally figured out how to make a decent tablet UI

        Jelly Bean was first available on the Nexus 7.

        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?

        I can see docking a Nexus 7, the flagship device introducing what you call the first decent Android tablet UI, with a Bluetooth keyboard. But ASUS and Google left a monitor output off the Nexus 7, and what sort of pointing device would you recommend using?

    • by CAIMLAS (41445)

      It would have to be marketed and priced correctly. I'm thinking in the 300-500 dollar price range, with a 20" display of decent resolution, wireless keyboard and mouse, and possibly something akin to a Wii infrared controller. Then they'd basically have to market it like Apple did the iMac all those years ago when it was initially offered.

      For maybe $250, if they were to do the same thing but as a dock for Android phones of 4.0 or greater release, I'd buy one.

      The Transformer has done much what you say, but t

  • And rightly so (Score:4, Insightful)

    by siddesu (698447) on Wednesday October 31, 2012 @04:03AM (#41827789)
    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.
  • by symbolset (646467) * on Wednesday October 31, 2012 @04:06AM (#41827797) Journal

    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.

  • by tanveer1979 (530624) on Wednesday October 31, 2012 @04:12AM (#41827815) Homepage Journal

    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).

    • by AlphaWolf_HK (692722) on Wednesday October 31, 2012 @04:26AM (#41827857)

      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.

      • 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: (Score:3, Insightful)

      by LordLucless (582312)

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

    • by h4rr4r (612664)

      What does that have to do with openness?
      Cannot you not do a git pull from India?

      Google play is not open, nor anything more than one of many android markets.

  • i don't care so much about the brand name. i just want a kickass pc that doesn't cost 2 weeks salary. it has to be reliable, fast, and made from metal not crappy ass rounded plastic.
    • Firstly, "cheap" and "quality" are antonyms. Secondly, the saying goes "Cheap. Small. Fast. Pick two." Your desktop PC will cost around the same as an iPad, be quite a bit faster in all tasks, but will take up around 30x the volume. Equally your Nokia dumb phone costs £30, weighs less than a cup of coffee, but has the processing power of a toaster. Thirdly, Quality Assurance for your fast, reliable PC costs money, and you're going to pay for it. If you want cheap, buy $ChineseRipOff.

      Did I just
    • You have no idea...

      I bought my first PC in 1986 for 1500 UK pounds. At the time was almost a third of my annual pre-tax salary so I needed a loan to buy it. I used it to hone my coding skills and my salary increased five fold by 1990.

      PC's have come down massively in the last few years, and continue to improve in performance. Don't know so much about reliability and sturdiness though. My first PC weighed a ton and would have survived a nuclear attack.

      Two ways you can get what you want. Either get a better pa

    • by h4rr4r (612664)

      How low is your salary? For one week of middle of the road USA salary you can get a really nice PC.

  • by drkim (1559875) on Wednesday October 31, 2012 @04:44AM (#41827915)

    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: (Score:2, Insightful)

      by jovius (974690)

      You can count them as shipped laptops/desktops, but a laptop for example is essentially the same as a tablet. The difference is that for a tablet a keyboard etc are accessories, whereas in laptops they are built in. The same goes with mobile phones. They are all personal computers, which today are packed with more power and features than the PC's of the past. The field is being miniaturized and diversified, as the concept of personal computer detaches from the rigid paradigm and moves towards the network mi

      • by LodCrappo (705968)

        ...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

        • by drinkypoo (153816)

          ...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

          don't worry, Microsoft is fucking things up again in Windows 8 to break a bunch of that stuff, so that they can sell the users more shit, so that doesn't differentiate a tablet from a PC.

        • by jovius (974690)

          The field is inevitably changing. The number of different devices is hugely different than 30 years ago, and the software/hardware will adapt. Besides you can run the same software via virtualization. It's entirely possible to use Windows for example with an iPad today.

          • by LodCrappo (705968)

            Everyone knows its possible, but most people realize its not practical. Try telling the average office worker with two 24 inch monitors, a full keyboard and a mouse on their desk that now they'll be using a remote windows session on a 10 inch screen. See how that goes over.

            As far as "the software will adapt".... I suspect you haven't actually seen the software most businesses run on. Even in places where adapting to a tablet is possible, it is an expense that has to be justified.

            Average IT guy to phb:

            • Your story makes it sound like the PHB is a reasonable guy. Here is a more realistic 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: No
              IT guy: But we could update it to support modern devices.
              PHB: No
              IT guy: But it would be less expensive to maintain in the long run.
              PHB: Why do we care?

              • by edremy (36408) on Wednesday October 31, 2012 @10:51AM (#41830315) Journal
                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!

                • This is why IT departments should not be in the business of writing software, and big projects actually need project managers.

        • If that laptop's running OSX, then no. That laptop can't be running software that hasn't been in constant development for 30 years.

          OR

          If it was successfully ported to OSX using Cocoa, then porting it to Cocoa Touch for iOS would be trivial and using a corporate iOS deployment server means you can deploy Touch versions of that software.

          What's your point?

          People don't do "real work" on tablets? Other than writing, spreadsheets, SSH, art, music, video and maybe some photography, sure. no one uses tablets for "

          • by kimvette (919543)

            People don't do "real work" on tablets? Other than writing, spreadsheets, SSH, art, music, video and maybe some photography, sure. no one uses tablets for "real work."

            . . . and increasingly in use as point of sale and payment terminals, in medical clinics (clipboard/medical chart/drug reference/etc.), construction sites, business networking events, and so on. Aside from all those tasks, no one uses a tablet for real work. Oh, and aside from vehicle diagnostics, DJing, hmm, wait a sec. Maybe people do use

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

      Whatever it is, I'm completely sure the GP wasn't refering to computers manufactured, since Apple doesn't manufacture computers. What, by the way, is a strange feature for the "largest personal computer manufacturer"...

  • rtfa-troll writes

    Indeed.

  • Huh? (Score:5, Insightful)

    by Robert Zenz (1680268) on Wednesday October 31, 2012 @04:53AM (#41827945) Homepage

    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...

  • by Lincolnshire Poacher (1205798) on Wednesday October 31, 2012 @05:23AM (#41828053)

    All aboard the hyperbole bus!

    Still 87.5 million PCs [engadget.com] ( 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: (Score:3, Insightful)

      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
    • by drinkypoo (153816)

      87.5 million PCs shipped worldwide. Ignoring for a moment how many of those PCs will end up landfilled or surplused without actually being installed, there's also the issue that you're comparing all PCs sold worldwide with tablets sold by one company.

      I do agree with you that tablets haven't yet destroyed the PC market. And I don't really think they will ever destroy it. I am, however, convinced that tablets will surpass desktops.

      • Ignoring for a moment how many of those PCs will end up landfilled or surplused without actually being installed...

        Those are way less than the amount of tablets that will be in a landfill two years from now.

        That's even the reason the PC market is "colapsing", PCs aren't going to a landfill anymore untill they stop working.

        • by drinkypoo (153816)

          That's even the reason the PC market is "colapsing", PCs aren't going to a landfill anymore untill they stop working.

          Nor are tablets or similar handhelds. They just get passed on to someone else until something fails/is destroyed, usually a button or jack or the display. They're still useful to someone even if they're the oldest examples of the new-era stuff (e.g. Android or iOS, not WinCE.) My only tablet is a hacked-up nook simple touch and it's remarkable how useful it actually is as a computing platform, so long as you don't expect to play Angry Birds on it. Actually, you can play Angry Birds on it, but I only loaded

    • by grumpyman (849537)
      I am sure buggy whips were sold in millions the first few years when automobiles just came along. They have not destroy it but it's definitely work in progress.
  • by LodCrappo (705968) on Wednesday October 31, 2012 @06:31AM (#41828293) Homepage

    "...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.

  • Really? The PC market has collapsed? They haven't started handing out iPads at work, and I don't know of a store that will sell you microsoft office to load on your iPad. At worst, I would call it a "Gradual tapering off of the incredible growth over the last twenty five years". iPad growth has exploded, but I have yet to see any numbers that show PCs actually decline in double digit numbers. The worst I've seen has been 4% year over year... which is about how the economy is doing depending on how you look

    • by LodCrappo (705968)

      Totally agree. PCs have matured enormously in the past 10 years. They have hit a sort of plateau in terms of power and reliability. Combine less compelling reasons to replace/upgrade than we've seen in recent history with the current economy and a slight decline actually looks pretty good.

  • I still use laptops and desktops heavily. But I actually USE a computer unlike 99% of the people out there. I write software for multiple platforms, I also edit professional video and have a 8 core monster for rendering. but then I used to have a power-mac and a stack of 12 hacked AppleTV-1's running OSX as a Final cut render farm. I still hate that apple turned final cut into iMovie....

    Anyways, there will ALWAYS be a market for pc's and high end laptops. I just wish that high end operating systems

  • Google really screwed up with the naming of their devices.

    For now, people will remember the differences between the Nexus 4 and 7. A year from now, I doubt it.

    Better naming would be:
    Nexus Phone 2
    Nexus Pad 3
    Nexus Sound 1

    Or sync the numbers and say 'screw it' to the slashdotters who complain about skipping numbers:
    Nexus Phone 3
    Nexus Pad 3
    Nexus Sound 3

    • by tuppe666 (904118)

      Google really screwed up with the naming of their devices.

      For now, people will remember the differences between the Nexus 4 and 7. A year from now, I doubt it.

      Better naming would be:
      Nexus Phone 2
      Nexus Pad 3
      Nexus Sound 1

      Or sync the numbers and say 'screw it' to the slashdotters who complain about skipping numbers:
      Nexus Phone 3
      Nexus Pad 3
      Nexus Sound 3

      I think you have missed the "winds of change". The buzzword was "platforms" now its "ecosystems". Apple have been playing the ecosystem card for a long time..."just works" means only with other Apple products. Desperate Microsoft use the word all the time today...and don't really have one yet. Google do..its android, the Nexus *brand* just shows they have a device at every "screen size" [Yeah they say that too].

  • People are aware that if they make outrageous claims that they will be hailed as a genius if they succeed, and the claims will be forgotten if they are wrong. At worst the claim will show up in some "Look at those silly guys from 50 years ago..." columns.

    Forgetting of course the shared memory of the Internet. In 10 years or 1 year or next week we can trot out their giant article on the "End of the PC", and point and laugh. Now, lots of people hooking on to the same absurd claim will not make it true, and wi

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