Asustek Pulls Plug on Windows RT Tablet

   By Eva Dou 
 

TAIPEI--Taiwanese personal computer maker Asustek Computer Inc. (2357.TW) said Friday it will no longer make Windows RT tablets, which run a version of Microsoft Corp.'s (MSFT) Windows 8 for ARM Holdings PLC's (ARMH) chips, citing weak sales.

"It's not only our opinion, the industry sentiment is also that Windows RT has not been successful," Asustek Chief Executive Jerry Shen told The Wall Street Journal on the sidelines of its post-earnings conference.

Mr. Shen said Asustek will make Windows 8 devices solely for Intel Corp.'s (INTC) chips, due to the system's backward compatibility that Windows RT lacks. Critics of Windows RT have said the operating system lacks enough applications to compete with Google Inc.'s (GOOG) Android or Apple Inc.'s (AAPL) iOS.

He said the company took a writedown on its Windows RT tablets in the second quarter, but didn't give a figure.

It was the first time Asustek explicitly said it won't produce Windows RT devices anymore, though it may not come as a surprise. Chairman Jonney Shih told AllThingD last week that "the result [of RT devices] is not very promising" and that he was putting all of his time and energy into devices that use Intel chips.

Write to Eva Dou at [e-mail]

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