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Asustek To Reorganize In Preparation For Spinoff

Motherboard giant Asustek Computer, aiming for product diversification in the 3C (computer, communications, consumer electronics) market, will reorganize in preparation for spinning off its branded and manufacturing businesses, according to sources. The company aims to spin off its own-brand and contract manufacturing divisions in 2008.

Market analysts predict that Asustek's own-brand notebook shipments will climb to 2.8-3 million units worldwide in 2006 and may record on-year shipment growth of 80% to rank among the world's top-10 notebook brands. In 2005, Asustek shipped about 1.6 million own-brand notebooks.

Under Asustek's reorganization, the notebook product manager (NB PM) system will be taken over by company vice chairman TH Tung in an attempt to consolidate Asustek's global sales business and branded marketing branch, the sources indicated. The PM team is considered the soul of Asustek's notebook business and will play an important role in backing the company's goal to eventually rank among the world's top-five notebook brands, the sources said. The focus of the NB PM system is to be fundamentally familiar with current market needs and trends and develop design and manufacturing capabilities for new products, the sources added.

The sources noted that the company has set a goal of becoming the seventh or eighth ranked notebook brand in the world in 2007. Statistics compiled by IDC and Gartner Dataquest show that Asustek's on-year growth in unit shipments led the global top-10 notebook brands in the first half of 2006. Despite weaker demand in the worldwide notebook market in the first half of 2006, the company's full-year own-brand shipment goal of three million units should be fulfilled, the sources expect.

According to an October 5 analysis by Merrill Lynch, Asustek will ship 2.5 million branded notebooks in 2006, and the shipments will climb to the 3.5 million mark in 2007.

Source: DigiTimes

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