WSJ did not get the story right. Here is one from the CEO.
Asustek optimistic about Nexus 7 shipments, says CEO
Monica Chen, Taipei; Adam Hwang, DIGITIMES [Tuesday 30 October 2012]
Since iPad mini is priced starting at US$329, Asustek Computer has felt less competitive pressure on the Nexus 7 because of the significant price gap between the two tablets, and target customers for iPad mini are different from those for Nexus 7, according to company CEO Jerry Shen.
Mainly due to booming shipments of Nexus 7, Asustek shipped 2.3 million tablets in the third quarter of 2012 and expects to ship 2.6 million in the fourth quarter to reach 6.3 million units for the whole year, 3.5 times the 1.8 million units shipped in 2011, Shen indicated. Asustek has considered the increasing competition among tablet vendors and accordingly has drawn up strategies for competition, Shen pointed out. Asustek expects to ship at least 10 million tablets in 2013 to become globally the largest vendor except Apple, Shen said.
Among Android tablets, 7-inch models have become the mainstream accounting for over 70% of total sales, Shen noted. Asustek is not worried about Google's cooperation with Samsung Electronics to launch the Nexus 10 because Asustek will hike performance-cost ratios for its 10-inch Transformer series tablets, Shen pointed out. Asustek will maintain close cooperative relations with Google, Shen stressed.
As Microsoft has launched Surface RT and will launch Windows 8 Surface in the first quarter of 2013, Shen indicated that the Surface series tablets are quite expensive and not slim enough, and therefore are likely to be suitable for business use. With advantages in the development of notebooks and tablets, Asustek is capable of offering less expensive and relatively slimmer Windows 8/RT tablets, Shen pointed out. However, the market acceptance of Windows 8/RT tablets will not be certain until 2013, and therefore Asustek will focus on Android for the time being, Shen noted.