More outsourcing for ASUS?

ASUS continues its reorganization and starting January 1st, 2008 will change its outsourcing strategy related to the motherboard and laptop production that it puts its name on.

More specifically, this means that Quanta will become the main OEM manufacturer of ASUS notebooks and that production of at least some of its motherboards will be entrusted to Foxconn. However, this move is by no means abnormal because when demand is high the Taiwanese giant already outsources up to 30% of its production. Results of ASUS’ future PC branch, Pegatron Technology, shouldn’t initially be affected too much, but this clearly indicates the desire to make each entity of ASUS more autonomous. However, while such a strategy is often beneficial for stockholders and company executives, this is yet to be seen for clients because the quality control of products can become that much more complex.