Weakening demand, deteriorating economy and product launches by the dozen have led to ASUS, one of the largest manufacturers of computer hardware to suffer overstocked inventories. A local daily in Taiwan in a recent report suggests that the company is planning to reduce its inventories by as much as 30% in Q1 2009. ASUS currently holds US $1.33 billion-worth inventory, which it plans to reduce to $1.03 billion.

In the process, the company may incur losses amounting of around 20% amounting to roughly $35.5 million for the fourth quarter last year due to depreciation, the paper noted. Inventory levels of motherboards and graphics cards by ASUS may be sized down to the levels of 8~10 weeks, with those of pre-built PCs expected to be lower. The company also reduce its operating costs by 10%. In the wake turbulent economic weather the world over, ASUS will be employing new strategies to face fluctuations in exchange rates.