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Asustek has no plans to spin off OEM notebook business
Notebooks | Reads from WWW
Mon 07 Mar 2005

Digitimes -- Asustek Computer will continue to engage in own-brand and contract notebook business and has no plans to spin off its OEM notebook unit from the parent company at the moment, said company vice chairman TH Tung yesterday.

Tung made the remarks amid rising speculations indicating that Asustek is poised to spin off its OEM notebook business in order to focus efforts to promote its own-brand models, while presiding over a ceremony to mark the launch of three Sonoma-based notebooks for sales worldwide.

However, Tung confirmed that Asustek would shift part of its OEM notebook orders to its 100%-own subsidiary, Asusalpha Computer, starting the second quarter.

Asusalpha is expected to complete the migration of its production of Apple notebooks from its plant in Chungli, northern Taiwan to Suzhou, Jiangsu Province (China) by the end of the first quarter, and the additional capacity left over at the Chungli plant would be allotted to OEM orders, Tung explained.

Tung also noted that there still has room for further development of own-brand notebooks because the world’s top-10 vendors now dominate just about 80% of the global notebook market, while leaving the remaining 20% up for grab.

Global notebook shipments are expected to exceed 50 million units in 2005, and the 20% amounting to an estimated 10 million units would be worth about US$10 billion, said Tung.

The three Sonoma-based notebooks, the W3000A, W5000A and V6000V, are built using Pentium M 730-770 processors, with clock speeds ranging from 1.60 to 2.13 GHz and screen sizes ranging from 12.1 to 15 inches.

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