Asustek denies plans to split company businesses

This is an interesting story and makes you wonder how it even started.

Asustek Computer has refuted a rumor that the company is considering separating its Open Platform business group, which includes motherboard, graphics card, monitor and peripheral product lines, and the System business group, which includes PC, smartphone and tablet product lines, to form independent companies.

Following Ted Hsu's return as Asustek's Chief Strategy Officer (CSO), rumors have spread that Asustek is planning to spin off its Open Platform business group - which is expected to see over NT$6 billion (US$185.73 million) in profits from its motherboard/graphics card businesses in 2016 and more than NT$10 billion if profits from monitor, network, smart home and gaming peripheral products are included - into an independent company.

As many of you know Asustek did the whole "lets spin this company off" thing before when they created Asrock.  The idea there was to create a company who could compete in the ultra low end market without impacting the bottom line of parent company.

Funny thing is ASrock has created some really high-end products over the past several years with some big names backing their marketing plans.  ‎Fatal1ty and Nick Shih come to mind as famous examples.  The other interesting thing to note is that while Asustek and ASrock are "separate" companies they both use the same component supplier and have remarkably similar PCB designs.

It is almost like they came from the same place.  humm

I would have to agree with Digitimes though, splitting the company would be a mistake.

Related Web URL: http://www.digitimes.com/news/a20160428PD203.html