Asus to spin off notebook division?

Posted on Friday, Mar 30 2007 @ 20:06 CEST by Thomas De Maesschalck
DigiTimes learned Asus has plans to spin off its notebook business under its Asusalpha Computer subsidiary.
Taiwan-based notebook makers, however, feel that such a move would weaken Asusalpha's competitiveness in the OEM market.

Though Dell has placed orders for around one million notebooks with Asustek, the company is demanding that Asustek complete the spinoff of its own-brand notebook unit by the first quarter of 2008 or else future orders from the company may be in question, according to sources at notebook makers. Coupled with the fact that Apple's orders for MacBooks end in November of this year and that future shipments to Toshiba will be limited in amount, Asusalpha might lose competitiveness in the notebook OEM market without Dell's support, noted the sources at notebook makers.

Sales of Asustek's own-brand notebooks improved greatly in the past two years, causing the company's OEM clients, like Sony and Apple, to switch their notebook orders to Foxconn Electronics (Hon Hai Precision Industry) and Quanta Computer, noted the sources.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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