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Asus is selling fewer netbooks because of the iPad

At an investor's conference in Taipai this week, Asus CEO Jerry Shen announced reduced sales forcasts for the popular Eee PC line of netbooks. Why? Because people are buying iPads instead.

Digitimes reports that Eee sales fell from 1.6m units in Q1, to 1.5m in Q2, and are now expected to be 1.4m in Q3 . As the third quarter includes the lucrative back-to-school period, those numbers are moving very much the wrong way for Asus. Apple famously sold three million iPads in less than three months despite stock shortages, so whilst Asus is still outselling Apple, that's likely to change soon.

Asus is planning to retaliate with its own own tablet computers running Windows Embedded Compact 7: Too Many Adjectives Edition, but Engadget's writers weren't impressed when they previewed it recently.