ASRock and ASUS: Mythbust

[Altered]

When you take a contract as a design and manufacturing service company, which is what PEGATRON CORP does, it is binding. It would be quite arrogant to have a business working under the table sharing secrets would it not.

Since ASUSTeK is only interested in high end boards wouldn't it be a disadvantage (piss poor business decision) to go giving out freely their RnD to ASRock a totally separate company that is now competing against them with mid to high end boards?

What I find amazing that no one is talking about is ASUSTeK getting out of manufacturing. So now they will/are contracting out their boards to be built by a manufacturing service company.

Asustek Computer, the world’s largest maker of mainboards, has decided to completely spin off its mainboards and graphics cards manufacturing arm Pegatron Technologies, the company said this week. The move will allow Asus to become more competitive in terms of branding, but will further withdraw the firm from the actual manufacturing.

http://www.xbitlabs.com/news/mainbo...pin_Off_Pegatron_Technologies_Completely.html

So you pay top dollar for a board built by ASRock Inc. parent Co. with a ASUS sticker. I just don't see anyone complaining about it.

 

[HossHuge]

Ok. I just called ASRock and talked to one of their sales people. He told me that officially they are not connected. However they have the same chairman and Asus does own shares in Pegatron.

Hope this helps!!

Did anyone read this?

 

[OneMoar]

When you take a contract as a design and manufacturing service company, which is what PEGATRON CORP does, it is binding. It would be quite arrogant to have a business working under the table sharing secrets would it not.

Since ASUSTeK is only interested in high end boards wouldn't it be a disadvantage (piss poor business decision) to go giving out freely their RnD to ASRock a totally separate company that is now competing against them with mid to high end boards?

What I find amazing that no one is talking about is ASUSTeK getting out of manufacturing. So now they will/are contracting out their boards to be built by a manufacturing service company.
http://www.xbitlabs.com/news/mainbo...pin_Off_Pegatron_Technologies_Completely.html

So you pay top dollar for a board built by ASRock Inc. parent Co. with a ASUS sticker. I just don't see anyone complaining about it.

DING!

 

[btarunr]

I understand what you're trying to say but doesn't that fact that Asus has shares in the company that runs ASRock mean that they can influence them in some way?

For example. If things start going bad for ASRock, as a shareholder, I'd be like WTF is going on here!

Now that is a valid point. ASUS does have some leverage over ASRock as a shareholder of Pegatron, but consider this:

• ASRock is the third biggest motherboard vendor in terms of sales link
• ASRock and ASUS have some IP cross-licensed link
• Pegatron manufactures for ASUS link
• It's extremely difficult to find a foundry partner in Taiwan. Taiwan's foundries and whitebox manufacturers have the best Cost-performance and efficiency in the industry, and the foundries are occupied to an extant that even the great Samsung Electronics finds it difficult to seek a foundry-partner in Taiwan, and has to look for one in Mainland China link
• If ASUS destabilizes Pegatron, it stands to lose

So while there is some leverage, I still think ASUS and ASRock are largely independent and competitive to each other, beyond being independent on paper.

 

[OneMoar]

meh you underestimate how much "leverage" is used in asia to get things done
I am sure if the CEO of asrock called asustek up and said hey I got these new chips I want on YOUR boards they would jump

 

[Altered]

I understand what you're trying to say but doesn't that fact that Asus has shares in the company that runs ASRock mean that they can influence them in some way?

For example. If things start going bad for ASRock, as a shareholder, I'd be like WTF is going on here!

Unless ASUS has majority shares (and it does not) hence they are no longer owned by ASUS then they are along for the ride pretty much. That was a risk of going on your own when being spun off, sink or swim baby!

And would you call someone who no longer owns/controls you to discuss your new business problems?


Our company went through this twice and being spun off can leave a bad taste in some board members who are actually running the business. CEO's are not almighty powerful no matter what some seem to believe.

 

[OneMoar]

you need to stop thinking like a strait business man and start thinking like a crooked one
over there everything is neatly controlled by a inner balance of corporate "fixing" games

 

[OneMoar]

example if I know my former colleague has something I need and he needs something I have and the end result would be more/stabler profits for everyone ? why not ?

 

[Altered]

example if I know my former colleague has something I need and he needs something I have and the end result would be more/stabler profits for everyone ? why not ?

You may know that but you have to convince the board of this. One position doesnt ultimately have power in large corporations.

 

[OneMoar]

You may know that but you have to convince the board of this. One position doesnt ultimately have power in large corporations.

it does when the co-founder'S/former MSH's of both are the same

 

[n-ster]

Well I feel stupid, I didn't even know this happened >.> I didn't spread any misinformation though so I am relieved at that

From what I have seen, ASUS owns 25% of Pegatron and I also saw something about some ASUS directors involved in Pegatron or something

From what I understand so far, ASUS and AsRock aren't 100% related anymore, but ASUS still has SOME decision power in AsRock. So ASUS would be thrilled if AsRock does very good as long as it doesn't eat into ASUS' marketshare too much, but AsRock is 100% a competitor to ASUS.

AsRock would be happy if ASUS were to weaken, while ASUS would be happy if AsRock does well without stepping on their toes too much

 

[OneMoar]

Well I feel stupid, I didn't even know this happened >.> I didn't spread any misinformation though so I am relieved at that

From what I have seen, ASUS owns 25% of Pegatron and I also saw something about some ASUS directors involved in Pegatron or something

From what I understand so far, ASUS and AsRock aren't 100% related anymore, but ASUS still has SOME decision power in AsRock. So ASUS would be thrilled if AsRock does very good as long as it doesn't eat into ASUS' marketshare too much, but AsRock is 100% a competitor to ASUS.

AsRock would be happy if ASUS were to weaken, while ASUS would be happy if AsRock does well without stepping on their toes too much

EXACTLY
its a web of share holders / interests and control
I think we are done here gentlemen

 

[werez]

Asrock is just a brand . Pegatron is the real manufacturer here . Al these "high-end" mobos that you see lately branded ASROCK are manufactured by Pegatron .

 

[eidairaman1]

ya n those boards are really robust, What id like to see is some overclocking numbers out of AsRock Models n see where they fit in with Asus, Gigabyte and MSI

 

[SkullFox]

Not in universe but on earth

what features are you missing form Gene-Z or ED55 ? some PCI ports alrite but something else?

exactly... if you are missing some pci ports you become lesser than the big brother.

Please some one post legit sources to prove they are owned by the same company or they are sharing resources?

Ok than, put some sources that say they are not sharing anything.

Still funny that being totally unrelated NOW, they didn't change their logo one bit (ASRock). Maybe the marketng department told them so

yes!!! my point exactly. It wouldn't make sense in a marketing view.

ASRock competes directly with ASUS in the motherboard department (up to high-end products) and they are doing very well lately so it would be a bit odd for both companies to have the same owners.

I give you some examples....
-Agco Corporation owns 4 Agricultural tractors companies and they are all connected now: Massey-Ferguson, Fendt, Challenger and Valtra.

-Volkswagen Group owns:
Cars - VW, Audi, Seat, Skoda, Lamborghini, Bentley, Bugatti.
Trucks - VW and Scania
and on top of that it has major interests in: Porsche, MAN and Suzuki.

------


Asustek has been divided and thats it. The part of the companies (Asus and Pegatron) that is not of public ownership is still in the hands of the asus founders

 

[eidairaman1]

at one point of Time AsRock was a subsidiary of ASUS, that no longer exists as AsRock is its own company competing with the other board makers

 

[MilkyWay]

Hes just trying to say like Pegatron and ASUS are 2 separate entities but sometimes Pegatron make boards for ASUS almost like contracting out Pegatron, Pegatrons brand is now ASRock and its no longer an ASUS brand.

If im wrong correct me but that is how i understand it.

ADIDAS have shares in FC Bayern Munchen and make their kits yet they dont own them or have any business making decisions in the company. ASUS have shares in Pegatron a bit like how ADIDAS have shares in Bayern. I mean i can own shares in a company if i wanted to.

Its different to a Conglomerate where a company owns other companies which own many brands, which is a big parent chain.

 

[eidairaman1]

its just like Foxconn...

 

[SkullFox]

Hes just trying to say like Pegatron and ASUS are 2 separate entities but sometimes Pegatron make boards for ASUS almost like contracting out Pegatron, Pegatrons brand is now ASRock and its no longer an ASUS brand.

If im wrong correct me but that is how i understand it.

ADIDAS have shares in FC Bayern Munchen and make their kits yet they dont own them or have any business making decisions in the company. ASUS have shares in Pegatron a bit like how ADIDAS have shares in Bayern. I mean i can own shares in a company if i wanted to.

Its different to a Conglomerate where a company owns other companies which own many brands, which is a big parent chain.

not the same thing... adidas bought bayern's shares. Pegatron is a part of Asus that has become independent in legal terms.

 

[MilkyWay]

its just like Foxconn...

http://en.wikipedia.org/wiki/Foxconn
They make ipods and ipads! Yeah i guess its a little like Foxconn.

 

[MilkyWay]

not the same thing... adidas bought bayern's shares. Pegatron is a part of Asus that has become independent in legal terms.

Hows that any different? ASUS dont wholly own Pegatron. Its 2 separately trading companies no?

 

[Fourstaff]

ASRock listed under 3515,
AsusTek 2357
Pegatron 4938 in Taiwan Stock Exchange, so for all intents and purposes from the financial point of view they are all separate companies.

In Asus's latest financials I can find (2010), it listed that ASRock is a subsidary of Asus until May 31 2010. Before selling their stake on the abovesaid date, Asus owned 58.65% of ASRock. Pegatron is the same case, but Asus still holds 24.45% of Pegatron Shares.

http://www.corpasia.net/taiwan/2357...port in English_BagG4ynHEGtD_5dgIyjpNELHA.pdf

Pegatron owns some ASRock shares, but quantity not specified
http://www.pegatroncorp.com/download/FinancialStatements_2011_2Q_eng.pdf

So right now we have a Asus having some control over Pegatron (their main manufacturer), and Pegatron have some interest in ASRock (I cannot find how much this is). Regardless, this means that Asus and ASRock is effectively seperate entities from the business entity. The reason why Asus still have some shares in Pegatron is to "maintain good relations" with their main manufacturing partner.

In the engineering sense however, it might be the case that Asus and ASRock trade their engineers around to maintain a flexible working force, or it might be completely separate, I cannot find anything which supports either view.

People who says that "oh but Mr. X sits on ASRock's board and he used to be the Y of Asus board" is completely in the dark about corporate world, Chairmen and board members regularly trade their seats around, for example HP's Mark Hurd went to work with Oracle after he sexually assaulted someone.

TL;DR Bta is right but he is no good in explaining the position in the clearest way. Also, we need information on how much Pegatron owns ASRock, otherwise this "discussion" will not go forward.

 

[eidairaman1]

I find ur final line funny FourStaff

 

[btarunr]

Also, we need information on how much Pegatron owns ASRock, otherwise this "discussion" will not go forward.

ASRock is fully owned by Pegatron.

http://www.digitimes.com/news/a20091214PD206.html

 

[Fourstaff]

ASRock is fully owned by Pegatron.

http://www.digitimes.com/news/a20091214PD206.html

Sounds like ASRock is fully owned by Pegatron it seems, but it might be a weird case of "I only own a small percentage of ASRock but with some fancy agreement I am going to use ASRock as my main brand".