What They Say
Asustek posted its result for 2020 and saw profits up 119% year on year to $938 million, with revenues for the year at $13.54 billion with gross margin at 17.18%.
Q4 was down 4.93% on 2019, but was up 27.35% year on year. Profit was $346 million in Q4, up 273% on 2019.
Asustek had notebook short supply of 30% in the fourth quarter of 2020 and the level will still be 25-30% in the first quarter of 2021.
What We Think
Asus said that the biggest threat to the business this year is shortage of components and rising prices of parts. It has raised the prices for graphics cards and other products may also rise. PC shipments will be down around 10% from Q4, but up 70% on Q1 last year.
As you can see from the chart, Asus investors have seen a strong boost in the share price in the last couple of years and the price is at a five year high level. (BR)
