TAIWAN PC OEM Asustek said Thursday that notebook shipments fell short of its target in the first half of 2008 but that it will cut costs and expects renewed growth going forward.

Asustek president Jerry Shen told an investors conference that meeting the company's full year notebook shipments target would be challenging. He said that Asustek will accelerate plans to outsource the production of notebooks, including Eee PCs, into the fourth quarter of 2008 in order to reduce costs.

Shen attributed soft second quarter sales to slower demand due to the earthquake and weak stock market in China as well as the slowing European economy.

He said PC demand showed renewed strength in China and Europe in July and August, with monthly shipments in both regions showing sequential growth from July, a positive trend he expects will continue. He also anticipates continuing sales growth in the US due to Best Buy promotions and the growing popularity of Eee PCs there.

There's more, including Asustek's notebook sales target numbers, critical parts availability expectations and product mix percentages, and that's all here. µ