Asustek is reported to shut down its department that takes care of its Eee Stick, LCD TV and monitor products due to poor profit margin. The company cut down the members of the department from 100 to 20 and more cuts are on the way. Engadget reports:
The first (and seemingly more likely) of those is that the company is supposedly considering shutting down its division that builds "opto-mechatronics products" like the Eee Stick, which itself was formed from the remnants of the company's old optical drive department, and has reportedly already seen its size shrink from one hundred team members to just twenty. Potentially even bigger than that, however, is talk that ASUS might possibly be thinking about getting out of the LCD business.
After Asustek ended its partnership with Pioneer, it converted its optical drive department into “opto-mechatronics department” but the company did not see much profit. The company recently cleared its LCD inventories and received some new orders but intensive competition is taking heavy toll on Asustek’s display department.