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Asustek reveals details of post spin-off handset strategy

Asustek Computer plans to launch 13-25 own-brand handsets in 2008, with 80% of the new handsets to be 3G models, according to Benson Lin, president for Asia Pacific business unit at Asustek.

Asustek also aims to ship 250,000 own-brand handsets in the Asia-Pacific region in the coming year as compared to 100,000 units projected for 2007, said Lin, noting that Asustek will also venture into the handset market in China in the first quarter of 2008.

As compared to the 400,000 own-brand handsets sold in the Asia Pacific and Taiwan markets in 2006, Asustek's sales of own-brand handsets in the region this year are lower as the company has been focusing its efforts on the development of Windows Mobile-based devices, the Chinese-language Commercial Times quoted Lin as saying.

In other news, Asustek's own-brand business unit, which is to be officially separated from the ODM business units on January 1, 2008, will keep the majority of the parent company's handset R&D team and will push handset sales to telecom services providers in Europe, according to sources at Asustek.

Asustek's spun-off ODM business unit, Unihan Technology, will handle handset orders mainly from OEM clients, including Palm and Sony Ericsson, said the sources. Unihan will not be involved in the manufacture of handsets from telecom clients such as Vodafone and O2 in order to avoid entering into competition with OEM clients from the telecom sector, the sources stated.

Asustek's planned strategy for its handset business is in contrast to the one adopted by BenQ which went through a similar rebirth early this September.

In the case of BenQ, the majority of R&D staff remained at the ODM company, Qisda, which since then has targeted the telecom sector in Western Europe as its major market, while the new BenQ focuses on marketing own-branded handsets in Eastern Europe and China.

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