WiMax to be standard on new Asustek laptops

“We’ll try to make the whole product line from top to bottom of our notebooks, including the Eee PC, WiMax capable,” Asustek Chairman Jonney Shih said in an interview on Jan. 9 at the Consumer Electronics Show in Las Vegas.

Asustek has embraced WiMax as Sprint Nextel Corp., the third largest U.S. mobile operator, prepares to become the first national carrier to offer the technology in the U.S. later this year. Taipei-based Asustek said this week it will work with Sprint to offer the service to laptops buyers.

“They do need to take some new initiatives to gain share in the U.S. and worldwide,” said Tony Tseng, who rates the company “buy” as an analyst for Merrill Lynch & Co. in Taipei. “WiMax might help to differentiate themselves from their competitors.”

WiMax allows laptops and mobile phones to wirelessly connect to the Internet throughout entire cities, compared with the smaller areas that current wireless-fidelity networks cover. KDDI Corp., Japan’s second-largest mobile-phone operator, and Far Eastone Telecommunications Co., Taiwan’s third-largest wireless carrier, also plan to start offering WiMax services this year.

“We are the late comer in terms of the notebook,” Shih said. “The U.S. is the last stronghold, we know it’s a very tough market.” Asustek will increase its marketing budgeting in the U.S. this year and has a “very aggressive target” for boosting market share, he said, without elaborating.

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