Acquisition of Dell’s PC plant in Poland by Foxconn
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. Foxconn’s current weakness lies in its lack of a strong R&D team, and purchasing a purely manufacturing plant will not benefit the company much in this regard, the sources noted. The acquisition will not impact the current outsourcing plans of first-tier notebook makers for 2010 since Foxconn’s new orders are from Dell’s in-house production. Foxconn’s current notebook clients include Dell, Hewlett-Packard (HP), Apple and Sony with an estimated shipments of 3-4 million notebooks in 2009, and forecast shipments of six million units for 2010, the sources noted.
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. Foxconn’s current weakness lies in its lack of a strong R&D team, and purchasing a purely manufacturing plant will not benefit the company much in this regard, the sources noted. The acquisition will not impact the current outsourcing plans of first-tier notebook makers for 2010 since Foxconn’s new orders are from Dell’s in-house production. Foxconn’s current notebook clients include Dell, Hewlett-Packard (HP), Apple and Sony with an estimated shipments of 3-4 million notebooks in 2009, and forecast shipments of six million units for 2010, the sources noted.
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