Asustek Computer’s report said: “In the second quarter, revenue from brand business decreased by 15% compared to the previous quarter, down 11% year on year to NT $ 71.27 billion (US $ 2.26 billion), while net income fell 23% from the previous quarter, but rose 26% year on year. NT $ 1.68 billion

The gross margin of the brand business in the second quarter was 13.8% compared to 11.5% in the previous quarter and 12.7% in the same period last year.

A sharp drop in foreign exchange earnings and the loss of a subsidiary of ASKey resulted in ASUS non-operating revenues dropping 45% in the second quarter to $ 1.18 billion.

Although the company's foreign currency earnings will continue to be affected by changes in China’s currency, Asustek expects third-quarter earnings to increase due to improvements in ASKey’s operations and investments of NT $ 2.25 billion.

Asustek expects PC shipments and revenue to grow by about 20% in the third quarter, while shipments of components such as motherboards and graphics cards will increase by 15% year on year.

In the second quarter, Asustek revenue from the sale of mobile phones amounted to about 5.84 billion New Zealand dollars. The new model is valued at 433 million NT $ with a gross margin of 9.8%, while the older generation has a gross margin of 5.4 billion NT $ at 5.2%. The company's mobile business in the second quarter showed a net loss of 1.09 billion NT $.

Commenting on the unstable supply, reported by Asustek ZenFone 6, co-CEO S.Yu. Hsu noted that the problem is the use of liquid metallic materials to increase its reliability. Hsu added that current shipments have become normal, and smartphone sales have been stronger than expected.

The gaming company ROG Phone II has booked over 2 million units in China, and the first 10,000 lots have been sold. The company will also start selling smartphones outside of China. The company began working with Tencent to develop third-generation ROG phones.

Asustek currently sees a growing market share of motherboards / graphics cards and laptops in Southeast Asia. ASUS accounts for over 30% of the notebook market in the region and over 40% of the gaming notebook market in the region. Asustek co-CEO Samson Hu said that in Indonesia, Asustek has a 40% share in the local laptop market, and 55% in the country's gaming industry.

In 2019 and the second half of 2020, Asustek expects a steady growth in notebook shipments and is preparing to showcase its Creator PC line at IFA in Germany. The company also plans to launch new Chromebooks by the end of 2019 and the first quarter of 2020.

The company has also been deployed in the corporate PC division and is expected to start generating revenue by the second half of 2020.

Regarding US tariffs on laptop imports, Hsu noted that the company has increased its local channel inventory to 2–3 months and is still discussing production transfer with ODM’s upstream partners.

Although the transfer of production to China would entail additional costs, Hsu noted that the company will work with partners to solve this problem and adjust the final price of the product depending on rising costs.

In general, Asustek was faced with changes in the market that could make timely strategic adjustments and develop for the better.