The Apple iPad seems to be cutting into the demand for Asus Eee netbooks according to executives at Asustek. The Taipei computer manufacturer is being conservative in its forecasts of shipments this quarter, saying they will be down seven percent. The company is using caution following missed shipment targets in the second quarter.

But don?t shed too many tears for Asustek. Their planned shipment of 2.7 million notebooks is up 13 percent over the last quarter. They hope to ship 5.2 million motherboards also, about 16 percent more than last quarter. According to the Wall Street Journal, CFO David Chang predicts an increase in overall revenue of five to ten percent over last quarter. That second quarter is nothing to sneeze at ? 3.32 billion profit in New Taiwan dollars [104.2 million USD].

TWD to EUR comparison between Feb and Aug 2010CEO Jerry Shen cited unemployment in the US, an unstable Euro, and a slowdown in the Chinese economy as concerns. He said his company is concentrating on organic growth in China. Rather than partnering with other firms, they will expand their distribution channels in the smaller cities.

In May, Asustek unveiled their Eee tablet computer that will run on Windows 7 with Intel?s core processor. Their chairman, Jonney Shih indicated they were also contemplating opening an app store, saying: "We want to provide a content service as well, because it is very important."

Now, we learn during second quarter reporting that CEO Jerry Shen said Asustek will launch its first Android tablet in March 2011. They company pulled engineers from its smartphone division into the Android project. The tablet?s release will follow an earlier launch of two Windows-based tablets. An Eee tablet eReader running on Linux is coming also. Everyone is scrambling for the eReader market.

ASUSTeK EeePad EP-121: first on Windows 7, now on Android [Gingerbread 3.0]
ASUSTeK EeePad EP-121: first on Microsoft Windows 7 Premium, offering full Aero experience

Asus gives you a candy jar of choices: The Eee Pad Windows 7 [EP121, Intel Atom based], at 12 inches; a 10 inch Windows Embedded Compact 7 tablet [nVidia Tegra T20 based]; or the 8 inch Eee grey scale tablet reader. Don?t forget Android and Linux. One must wonder: Is it better to do one thing best, or spread yourself thin trying to be all things to all people?