It aims at the top five notebook producing companies

Oct 15, 2007 10:22 GMT  ·  By

Asustek is the company behind the well known and appreciated brands Asus, on the high end market, and Asrock, on the entry level market segment. While the two Asustek brands are mostly known and liked for their mainboards, they are also producing many other computer related parts like cases, coolers, video cards, LCD monitors and even portable computer systems.

According to the news site digitimes, Asustek has taken a new interest in its portable computer manufacturing business as the company sees that market segment growing very fast and generating huge revenues. Jonathan Tsang, president for sales and marketing at Asustek, stated in an interview that Asustek may even consider a program of acquisitions in order to expand the reach of its notebook and laptop manufacturing business.

Following in Acer's footsteps, Asustek may consider expanding its market share by incorporating one or more smaller companies and after the presentation of the ''Double Three'' growing plan that calls for the company to reach the top five notebook manufacturers in three years and in another three years to find a place between the top three, it looks like the acquisition of a smaller company would be the right thing to do.

Righ now, Asustek is the number one portable computer producer and vendor in Taiwan and Russia while also being one of the most important brands in Asia and the company is expecting to ship around seven million notebooks in 2007, of which only three to four million laptops are branded for Asus, while the others are heading to different vendors.

While the portable computer business is doing good and expanding, the low level mainboard business is crawling as the Asustek's entry level ASRock brand is facing some difficulties. The goal was to manufacture and ship around 12 million motherboards during this year, and until now, the company only registered shipments of around five million units. As the desktop computer segment is making way for the portable notebook or laptop, the first to be affected are the second tier manufacturing companies like ASRock that are specialized in low cost, low performance solutions.