UPDATE 1-Taiwan's Asustek gets order for 1 mln low-cost PCs

By Sheena Lee

TAIPEI, Oct 11 (Reuters) - Taiwan's Asustek Computer (2357.TW: Quote, Profile, Research, Stock Buzz) said it has received an order for 1 million of its new ultra low-cost computers, helping dispel some market speculation that global PC demand is starting to weaken.

Jonathan Tsang, president of sales and marketing, declined to identify the customer but said it was from an emerging market.

The new line of PCs, or Eee PCs, was announced this year and will cost as little as $199 each for bulk customers.

Tsang said the company, which sells computers under its own brand and makes laptops for major vendors such as Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz) and Dell Inc (DELL.O: Quote, Profile, Research, Stock Buzz), hoped to sell several million Eee PCs next year, following their launch in consumer markets in the United States and Europe over the next few weeks.

"If we can sell a couple million (Eee PCs), we'll be confident," Tsang told a small group of reporters at the company's headquarters on Thursday.

In the United States, the company plans to sell the low-cost laptops through channels such as Best Buy (BBY.N: Quote, Profile, Research, Stock Buzz) and Web-based retailer Newegg.com. The company could also start marketing the low-cost computers in China this year or next, Tsang added.

Separately, Tsang said he had not seen recent signs of weakness in the global PC market, despite warnings from some analysts of a possible slowdown.

"Global demand so far looks good in the fourth quarter," he said.