Asustek Computer saw sales of its netbooks in the second quarter fall short of expectations mainly due to competition from Apple's iPad, and has has downward adjusted its target shipments for the third quarter, the traditional peak sales period, to 1.4 million units, according to company president and CEO Jerry Shen at an investors conference on August 13.

Because of decreased shipments of motherboards, notebooks and netbooks, Asustek's financial performance for the second quarter declined on quarter. Asustek will continue to offer Eee PCs and will step into the tablet PC segment with its Eee Note and Eee Pad series, Shen pointed out.

Asustek has been gradually increasing outsourced production, with the proportion of total production expected to rise to 30% at the end of 2010 and further to 50% in 2011.