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    ASUS to separate OEM & own brand notebook business

    Discussion in 'Asus' started by Underpantman, Mar 10, 2005.

  1. Underpantman

    Underpantman Notebook Virtuoso

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    The following is a report from Digi-Times which was released yesterday !
    "Asustek to officially separate its own-brand and OEM notebook business, to carry out new acquisitions

    Original date: 2005/3/10
    Translator: Steve Shen
    Asustek Computer has decided to officially separate its own-brand and OEM notebook business units and will also aim to solicit OEM orders from the world’s top-five vendors, vice chairman TH Tung said yesterday.

    Under the plan, Asustek will shift its OEM notebook orders to its 100%-owned subsidiary, Asusalpha Computer, Tung said.

    The separation is to be implemented under the request of its OEM clients who are concerned about conflicts of interest between Asustek’s own-brand and OEM notebook business, Tung stated.

    However, Tung noted that Asusalpha will still remain a 100%-owned subsidiary of Asustek, with its revenues and profits to be reflected in Asustek’s consolidated financial report.

    Asusalpha, which currently manufactures notebooks Apple Computer, Sony and Samsung Electronics, will position itself as a competitor to other notebook makers such as Quanta Computer, Compal Electronics and Wistron, to win OEM orders from the leading vendors like Dell, Hewlett-Packard (HP) and IBM, Tung indicated.

    Asustek will then focus its efforts to promote own-brand and ODM notebook business, Tung said, noting that Asustek is also studying the possibility to outsource part of its notebook production to other contract makers to further bring down its costs.

    In addition, Asustek will also carry out new acquisitions to further integrate and strengthen its operations, Tung said.

    Details of the company’s acquisition plans will be made public in two weeks, Tung said, noting that the target companies will not be second-tier notebook makers like Clevo as rumors have stated."



    ASUS M6Ne 15.4" WSXGA 1.7 PM ATI9700 80Gb HDD 1Gb RAM
     
    Underpantman, Mar 10, 2005
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  2. PROPortable

    PROPortable Company Representative

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    Yeah, thats been an issue on the board for a long time..... With the growth in the US really starting with all the reviews and good press about the W1, apple was certainly worried about them losing business to Asus. Although in the US, W1 sales really can't "hurt" Apple, plenty of long time Apple buyers did turn to the W1 or S5 in the past year. All that does is to technically make two different companies where the subsidiary signs the do not compete contract and not asus.

    This is very similar to how we have to balance our custom asus systems which are technically our brand, mean while, selling their complete systems... This is one reason the barebone models coming out this spring will vary significantly from the complete systems that are coming out right now. If they were exactly the same, like I mentioned earlier today, we'd obviously want to just promote the barebone units.

    Asus' sales are way up all over the world and these events certainly aren't just because of increase US sales, but probably huge increases in sales in Asia.

    Thanks,
    Justin
    PROPortable
    www.proportable.com
    [email protected]
     
    PROPortable, Mar 10, 2005
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