Electronics giants Asustek (better known for its brand ASUS) has decided to restructure the company similar to what AMD did a while back. It had decided to sell its wholly owned subsidiary Pegatron Technology that manufactures Asustek’s and other companies’ products.
Why is it Asustek wants to separate manufacturing and development? In Asustek’s case it is simply because to avoid competing with itself. ASUS started as a motherboard manufacturer and it is still making a lot of motherboards per contract with many great PC builders; HP, Dell and others.
Now that Asustek has expanded its business to making its own computers, it all started with the very successful Eee series, the orders from other companies have reduced. They have been worried that ASUS would get advantages and in the long run would give them insight into how other companies was planning to act.
At the same time it wants to avoid supporting direct competitors by buying from them. Now that it separates the manufacturing from the rest, where Asustek will only own 25%, it hopes to remove all doubt that an order made to Pegatron Technology till be the same as with any other manufacturing company, for instance competitor Foxconn.
The change will not affect the brand ASUS, but it should result in an even brighter future for Asustek.
