Asustek Outsources Desktops, Notebooks to Foxconn, Flextronics

It was only a matter of time before Asustek Computer would start to outsource production of its computers and components to its former rivals after spinning off the contract manufacturing business into a standalone company. According to market rumours, the time has come and Asustek has initiated work with Foxconn and Flextronics.

Taiwan-based Economic Daily News news-paper has reported that Asustek Computer recently began to outsource production of its desktops and laptops to its former rivals – Foxconn Electronics as well as Flextronics. It is likely that Asus needed to initiate partnerships with its former competitors in order to cut costs and broaden lineup of its branded devices.