It's not known to what degree ASUS would be supplementing its Windows Mobile devices or replacing some of them. However, the move if substantiated is potentially a blow to Microsoft, which regularly touts phone makers such as ASUS as examples of its diversification.
Separately, ASUS is reportedly looking to switch its systems to Marvell and Qualcomm processors, including a dual-core chip from Qualcomm. The switch would suggest a move further towards ARM processors and with dual core would better allow more processor-intensive tasks like 3D.
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