Asus Ceases Eee PC Netbook Production

Asus recently announced its decision to discontinue the production of its Eee PC netbook line. According to Digitimes, the Taiwanes electronics giant had two reasons behind this pronouncement. One is an increased demand for tablets and notebooks. Another is a decline in demand for netbooks in emerging market. In place of the Eee PC netbooks, Asustek will focus on its Transformer tablets to cater to consumers who want a 10-inch mobile device.

Micro-Star International (MSI), a company also making netbooks, has made a similar announcement. MSI likewise cited the popularity of the growing popularity of tablet PCs in regions such as the Middle East, Latin America, and Southeast Asia as opposed to 10-inch netbook.

Meanwhile, Acer has not announced any new netbook plans for the near future, possibly implying that it will likewise stop making netbooks as well.

It may be recalled that it was Asus which pioneered the netbook category in 2007 through the Eee PC netbook series. The netbook attracted consumers for its combination of portability and an inexpensive price tag as compared to the notebook. Apart from Asus, companies like Dell, HP, Acer, Sony, and Samsung, among others, have released their own netbooks. Netbooks, however, have been criticized for having low-powered processors which could not satisfy the needs of some consumers. In contrast, cosumers today may enjoy fast performance speeds and portability not only from the tablet but also from the Ultrabook.

Apart from the low demand for netbooks, Digitimes reports that licensing fees for Windows 8 operating system as well as improvements like the addition of touchscreens or displays with higher resolutions are likewise factors that encourage electronics companies to terminate netbook production.

Apart from companies like Asus and MSI, Intel, as well as ODMs such as Pegatron Technology and Compal Electronics, will feel the impact of the decreased demand for netbooks.

via digitimes

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