Foxconn purchase of Dell PC plant unlikely to impact notebook makers in the short term

Foxconn Electronics' (Hon Hai Precision Industry's) acquisition of Dell's PC plant in Poland is unlikely to help boost its notebook shipments significantly in the short term since the plant's notebook output is very small; however, it might trigger Dell to increase its outsourcing to Foxconn in the long run, according to sources from notebook makers.

Dell's in-house notebook production lines are mainly located at its plants in Malaysia while the Poland plant is mainly used for desktop production with a very small volume of notebook manufacturing. Therefore, the acquisition should directly benefit Foxconn's desktop shipments and sales, the sources pointed out.

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