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Author Topic: ASUS announces plans to split company and brand  (Read 3892 times)

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ASUS announces plans to split company and brand
« on: 03. July 2007., 21:39:04 »
AsusTek Computer Inc. (known to most motherboard enthusiasts simply as ASUS), has announced its intention to split into three separate corporate holdings in order to maximize competitive performance and minimize potential conflicts of interest. As things currently stand, it's possible for a company that competes with the AsusTek brand to actually contract with AsusTek to build equipment, and several customers have expressed unhappiness over this arrangement. Asus' branded business will retain the Asus name, the PC-related manufacturing segment will be known as Unihan Technology Corp., and the casing, module, and non-PC contract manufacturing segment will be named Pegatron Technology Corp.

This type of dramatic spinoff is not without precedent: Acer Inc., was originally a single, unified company that spun segments of itself off into a contract manufacturing arm (Wistron) and a mobile phone and monitor business (BenQ). Although investors were originally worried that Wistron might fail to compete effectively for Acer orders, the company has since captured business from Microsoft's Xbox 360. AsusTek's coming spinoff is also well-positioned; Sony currently taps AsusTek for the PlayStation 3.

Of the three new companies set to debut by January of 2009, Pegatron is expected to have the largest revenue share, at approximately NT$300 billion to NT$350 billion. The future AsusTek-branded business should account for ~NT$250 billion, and the Unihan segment is expected to see revenue of NT$150 billion. Combined revenue for all three companies should reach NT$800 billion, compared to NT$560 billion in 2006. After the separation, AsusTek leadership intends to focus on contract manufacturing, with the stated goal of becoming the world's top manufacturing provider. As part of that plan, AsusTek is considering opening facilities in Brazil, Vietnam, and India. Total company revenues through May were at NT$319.1 billion, up 99.7 percent year-over-year.
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ASUS announces plans to split company and brand
« on: 03. July 2007., 21:39:04 »


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