Asustek Plans To Divide & Conquer

Author	Gordon Kelly
Published	3rd Jul 2007

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Asustek Computer Inc (more commonly known as 'Asus') is to split after the Taiwanese giant confirmed plans to radically restructure its organisation in January separating off its OEM and branded businesses.

Broken by Reuters, it states the former – which focuses purely on contract manufacturing – will be divided into two parts: 'Pegatron' for PC orientated products and 'Unihan' for casing, modules and non-PC goods. The latter will retain the Asus name and push for greater brand recognition internationally.

Interestingly, Asus also says it plans to eventually cut loose both Pegatron and Unihand in time by lowering its stake in them and pushing them towards operational independence. Asustek has previously stated a desire to part its OEM and branded businesses but had placed no time period on the move.

Such a business decision – while exhaustive – is not without parallel. Asus rival Acer performed exactly this operation back in 2000 when it spun off its manufacturing operation (Wistron Corporation) to focus on its branding business. The company has since entered the World's top three branded PC vendors recently edging ahead of Lenovo.

Inside the technology industry Asus is regarded by many as the most well known company no one outside it has heard of... clearly the Taiwanese giant is aware of this and plans a change...

Link:
Asus
Reuters Report

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