On Monday, Acer Inc. and AsusTek Computer Inc.

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For its innovation and disruption, the Asustek Eee PC is FORBES ASIA's Product of the Year.

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Acer, a crosstown rival in Taipei and first responder to Asustek's innovation, has since surpassed Asustek to become the number one company in the mini-laptop category.

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The company outsources the entire manufacture of the device to a number of Asian enterprises, among them Asustek, Inventec Appliances and Foxconn.

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Asustek Computer produces motherboards and is moving into notebook computers.

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The other notable players in the market include Asustek, Acer, Lenovo and Samsung.

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So Asustek spun off its contract and original-design manufacturing business to quell concerns.

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At 9 inches wide and weighing in at just 2 pounds, Asustek's pint-size Eee PC doesn't look like a heavyweight contender.

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Asustek plans to launch a new smartphone and double its shipments of tablet computers this year to expand from its core PC-manufacturing business.

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Asustek is confident that it's pioneered a new category, however, and says its market disruption makes that point very clear.

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