(TS) – Asustek Computer is reportedly considering closing down the departments that handle the development of its Eee Stick, LCD TV and monitor product lines due to unsatisfactory shipments and profits, according to industry sources.

Asustek has converted its optical drive department into a unit for developing opto-mechatronics products such as the Eee Stick after the company ended its partnership with Pioneer, but the opto-mechatronics department has not seen significant results, with the number of team members dropping to only 20 from the original size of about 100, the sources said.

Meanwhile, although Asustek has recently cleared its LCD display inventories and landed some new orders for LCD monitors to be bundled with its desktops in the procurement market, the fierce competition from other players is still inflicting losses on Asustek’s displays department, the sources noted.

The sources also noted that Asustek originally planned to reduce its investment in Eee PC development, but it has changed its mind, ready to increase its investment in Pine Trail-based netbooks to compete against Samsung Electronics and Acer and maintain its share in the notebook market.

Asustek has denied that it is considering closing down the departments.

DIGITIMES

Tags: Asustek, Eee Stick, LCD displays


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