Hon Hai wins contract orders for NB PCs from Dell

Due to the revamped contract-manufacturing strategy of the world's third-largest NB PC manufacturer Dell Computer Inc., the world's top-two electronic manufacturing service providers, including Hon Hai Precision Industry Co. and Flextronics International Corp., recently obtained from Dell orders for consumer NBs, which will start to be delivered sometime in the first quarter of 2009.

Such move by Dell is expected to impact the global electronics contract-manufacturing environment.

An institutional investor estimated Hon Hai would be able to ship more than three million units of NBs this year, with such volume to double in 2009 as it has tapped into Dell's contract-manufacturing chain.

Word is that over the past few months Hon Hai and Flextronics have been vying to acquire orders from such big names in the electronics arena as Hewlett Packard, Dell, Acer, Lenovo and Apple.

At present, Dell's major contract manufacturers include Quanta Computer Inc., Compal Electronics Corp. and Wistron Corp. With Hon Hai and Flextronics added to such list, Dell will have five contract manufacturers producing its NBs, which came to 20 million units a year.

Hon Hai Group aims to achieve annual sales growth of 30% this year. The group achieved NT$1.23 trillion (US$40.32 billion at US$1:NT$30.5) and NT$2 trillion (US$65.57 billion) in non-combined and combined sales, respectively last year. To achieve the 30% annual sales growth, the group will have to challenge NT$2.5 trillion (US$81.96 billion) in combined sales this year.

To achieve its operating goal, Hon Hai Group, since the beginning of this year, has acquired partial assets of the plants in the U.S., Hungary and Mexico owned by the U.S.'s fourth-largest EMS firm Sanmina-SCI. In addition, the group has also obtained orders for servo systems from IBM, Hewlett Packard, orders for third-generation iPhone cellphones from Apple Computer Inc., and assembly orders for liquid crystal display TVs from Sony Corp.

With industry-leading power in designing, producing and assembling electronic products for its the strong backup from its subsidiaries as Q-Run Technology Corp., InnoLux Display Corp., CyberTAN Technology Inc. and Pan-International Industrial Corp., Hon Hai continues to stun domestic contract manufacturers with its acquisition of NB orders from Dell.

source & copyright: CENS