Asustek acquires Dell's contract

Local sources reported that Asustek Computer Inc has successfully acquired notebook PC's contract from Dell Corp.and pushed itself to become the fourth largest contract maker for notebooks after Quanta Computer, Compal Electronics, and Wistron.

However, Asustek declined to comment on the report. The report indicated that Dell's order for slim-profile notebook model with Asustek will start shipping sometime in the Q4 of 2006. The paper also noted that Asustek plans to shorten the schedule to divide its branded and manufacturing divisions in less than two years because Dell won't allow contract makers have own-brand business as the same situation Acer met in February 2002 which divided its PC business into the Design and Manufacturing Service (DMS) department and own-brand division.

Asustek is joining Taiwanese makers such as Acer Inc and BenQ Corp. in moving beyond the role of contract manufacturers for overseas customers. Asustek had a 20 percent increase in third-quarter profit with the triple sales of notebook computers. Asustek's net income of the third quarter rose to NT$5 billion from NT$4.2 billion a year earlier while the sales jumped to 56.3 billion with 210 percent increased. Asustek recorded its earnings per share (EPS) of NT$4.71 for the first three quarter, up 4.4% on-year.