Asustek Outsources

Asustek Outsources Desktops, Notebooks to Foxconn, Flextronics


by Anton Shilov

It was only a matter of timebeforeAsustekComputer would start to outsource production ofitscomputers andcomponents to its former rivals after spinning offthecontractmanufacturing business into a standalone company.Accordingtomarket rumours, the time has come and Asustek hasinitiatedworkwith Foxconn and Flextronics.

Taiwan-based EconomicDailyNews news-paper (which article was partlytranslatedbyDigiTimes web-site) has reported that Asustek Computerrecentlybegan to outsource production of its desktops and laptopsto itsformer rivals – Foxconn Electronics as well as Flextronics.It islikely that Asus needed to initiate partnerships with itsformercompetitors in order to cut costs and broaden lineup of itsbrandeddevices.

Foxconn will reportedly beginproductionofAsustek’s notebooks in 2009 with the initial aimofmanufacturingmore than 10% of Asus notebook shipments.Flextronicsis likely tomake desktops for Asustek.

Early this year Asustek Computer spunoffitscontract manufacturing business into Pegatron andUnihancompaniesin a bid to concentrate on development and sellingofAsus-brandeddevices. The company was expected to outsource partsofitsproduction to third parties in order to enjoybetterflexibilityand lower costs where possible. Nevertheless, itisstill asurprise that Asustek decided to turn to one of itsmajorrivals,Foxconn.

Asustek, according to reports, declinedtocommenton the market rumours.

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