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Asus stuck with excess inventory
Needs to get rid of it quickly
According to a report in one of the big daily Taiwanese newspapers quoted by Digitimes, Asus is sitting on too much inventory which is depreciating in value quickly and the company is now getting ready to get rid of it over the remainder of this quarter.
For the most part this will be motherboards and graphics cards, although the company is also stuck with a huge quantity of LCD displays which are all quickly losing value. Asus will only have 8-10 weeks worth of stock of its motherboard and graphics card products, with even smaller stocks of barebones.
Asus is also looking at cutting its operational costs by 10 percent, which seems to suggest that there will be layoffs within the near future. All-in-all, this doesn't seem like good news for Asus and the company seems to be in need to look over its business strategies to remain competitive in some product segments.
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