Asustek Computer, a leading maker of mainboards and other computer components, is rumoured to be considering spinning off its Eee brand into a separate company or business unit in order to be able to address higher-end market segment with its products that are sold under Eee trademark.
Asustek has historically sold rather expensive computer components and notebooks under its Asus brand-name, which allowed the Taiwan-based company to quickly increase its revenue and profits. Last year the company introduced its first Asus Eee PC 701 system that is currently considered as a low-end of Asus lineup. Earlier this year the company outlined plans to offer a range of Eee products, including a desktop, an all-in-one desktop and even an HDTV. However, since Eee PC is primarily a brand for Asus entry-level devices, it will be hard to sell the range of Eee products on general markets.
In order to broaden horizons for Eee-devices and Asustek Computer itself, the manufacturer plans to separate the Eee brand and make it independent, reports DigiTimes web-site citing market rumours.
For Asustek Computer it is not something new to separate business units into standalone companies. Back in 2002 the company spun-off Asrock company that is currently well-known on the market of entry-level mainboards, whereas in early 2008 the company spun-off Pegatron Technologies and Unihan Technologies, which produce various components and peripherals for third-party vendors on contract basis.
Separation of Eee will allow the latter to quickly grow its product lineup without fear to compete against Asustek Computer itself or its partners among system integrators who buy mainboards or other components from the company. In addition, the spin-off will allow Eee to target higher-end market segments with faster and higher quality hardware. For example, certain market rumours indicate that there are Eee notebooks with 10” and 11” screens in the works.
Unfortunately, Eee brand-name is still not as well known as Asus trademark and the new company will have to advertise it heavily before general public becomes familiar with it.