Asustek plans to spin off its own notebooks

Motherboard and manufacturing giant Asustek is planning to spin off production of Asus-branded notebooks to a wholly-owned subsidiary dubbed Asusalpha Computer, according to DigiTimes. The site says Asustek will keep motherboard and game console manufacturing under the Asustek umbrella. According to notebook maker sources quoted by DigiTimes, Dell is the main factor behind the move. Dell has apparently placed orders for a million notebooks at Asustek while demanding that the firm complete the spinning-off its own notebook division by the first quarter of 2008 "or else future orders . . . may be in question."

Asustek's orders from Apple will reportedly end in November and future orders from Toshiba will be "limited in amount," so losing Dell's business could hurt Asustek's prospects. DigiTimes notes that the success of Asustek's own notebooks in the retail market has impeded the company's notebook contract manufacturing business, causing it to lose customers like Sony and Apple who presumably aren't too eager to purchase notebooks from a major competitor.

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