Market Overview

Hewlett-Packard Outsourcing Decision is Bad News for Apple's Chief Manufacturer

Hewlett-Packard (NYSE: HPQ) has decided to shift its manufacturing efforts away from Foxconn, the legendary manufacturing corporation that produces Apple's (NASDAQ: AAPL) hottest gadgets.

According to DigiTimes, "upstream supply chain" sources indicate that while Foxconn currently holds 20 percent of HP's notebook orders, the PC maker is not interested in continuing this relationship in the coming years. In fact, DigiTimes claims that Foxconn "almost landed no orders from HP for 2013."

Instead, HP has sent more than 50 percent of its orders to Quanta Computer, which could end up manufacturing somewhere around 20 million units for HP. Consequently, Foxconn's only notebook computer clients may end up being Apple and Sony (NYSE: SNE).

HP will enlist in the help of Wistron, Compal Electronics, and Inventec to handle the rest of its manufacturing duties.

Follow me @LouisBedigianBZ

Posted-In: Apple foxconn hewlett-packard HP Quanta ComputerNews Rumors Tech Best of Benzinga


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