Palm hires Asus

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Subjugation
Posted
June 13, 2002
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I love you Asus.

Taiwan-based Asustek Computer has struck a deal with Palm to supply PDAs (personal digital assistants) running the new Palm OS 5 and the Intel PXA 250 microprocessor next year, industry sources said.

The first time ever for the handheld maker to source to a Taiwanese manufacturer, it shows the surprising strength of Asustek after it beat experienced Taiwanese PDA makers Inventec and Wistron for the highly-anticipated contract, according to sources.

Palm may have chosen Asustek because other major Taiwanese manufacturers already cooperate with its rivals. Also factoring in the decision may have been Asustek’s established production base in China and industry reputation. Asustek’s past ties with NEC to supply Pocket PCs that met exceptionally stringent quality standards added to its appeal as a high-quality manufacturer, sources said.

Under the companies’ plan, reportedly pilot production is scheduled for later this year and volume shipments for the first quarter of 2003, with an initial target of 200,000 units for the quarter.<

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