Asustek said it will aim at the high-margin slim-type CD-RW and CD-RW/DVD-ROM combo drives, especially external ones for notebooks. The company said that built-in drives are less profitable, and thus, are not the company’s focus. Currently, it uses Toshiba’s built-in models in the majority of its own-brand notebooks.
The company’s built-in drives are used in some of its notebooks and sold to industrial PC makers as well as second-tier notebook manufacturers.
According to Lin, the built-in, slim-type combo drive has a 20% profit margin, while the external ones can generate profit margins as high as 25-30%. The difference derives from the external drives being branded and from better cost controls when power supply components are included in purchasing, Lin added.