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Quanta and Asustek to no longer produce handsets for MWG

After Telefonica Group's sale of O2 Asia Pacific to Mobile and Wireless Group (MWG), the suppliers of MWG (ex-O2 Asia) will change, according to industry sources. Asustek Computer and Quanta Computer will no longer make handsets for MWG while Gigabyte Communications and Arima Communications will become its major suppliers, the sources added.

MWG recently introduced new own-brand mid-range and high-end smartphones. The new handsets support 3.5G and GPS, with availability to begin in March or April. The Atom V and Zinc II are made by Gigabyte Communications and Arima Communications, the sources noted.

High Tech Computer (HTC) was the original supplier to O2 Asia before HTC turned to focus on its own-brand business. O2 Asia then shifted its partnership to Quanta and subsequently added new suppliers such as Asustek, Arima Communications and Gigabyte Communications. With Quanta losing part of its R&D team and Asustek turning to focus on the own brand sector, their ties with the company will be reduced.

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