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10. Asustek Set to Withdraw from Mainboards Manufacturing

Asustek Computer, the world’s largest maker of mainboards, in mid-December announced plans to completely spin off Pegatron Technologies, the company that makes motherboards, graphics cards and a lot more components for Asus. The move will allow Asus to become more competitive in terms of branding, but will further withdraw the firm from the actual manufacturing.

Asustek is well-known for premium quality components for personal computers (PC) and is very popular among the end-users thanks to reach feature-set and premium quality. Not surprising that loads of our readers considered the news-story very important since with Asustek’s outsourcing of production to third parties it remains to be seen whether the quality remains on the same level. There are no doubts though that Asus will remain one of the top suppliers of motherboards in the world.

Asus does have very strong brand recognition in many countries around the world, especially among computer enthusiasts, and has been withdrawing from actual manufacturing for quite some time now. In fact, it is the very same route that Acer Group took many years ago by spinning off its manufacturing division – now known as Wistron – and concentrating on marketing of branded device. Acer Group is now, after acquisition of Gateway, Packard Bell and some other suppliers, the world’s second largest maker of personal computers.

It remains to be seen what exactly happens with Asus-branded mainboards, graphics cards and other devices businesses. Some expect Asus to start targeting broader market segments, other believe that it will concentrate on notebooks, netbooks and various other types of mobile electronics. In the meantime, rumours emerged that Pegatron Holding itself wants to reposition Asrock, currently low-cost supplier of motherboards that belongs to Asus, and enter premium market segments.

All-in-all, the competition on the market of motherboards will hardly get easier in the coming years, which theoretically means a lot of good for the consumer.

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