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Foxconn purchase of Dell plant in Poland

Foxconn purchase of Dell plant in Poland

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Foxconn recently purchased the Dell PC plant in Poland however this acquisition is unlikely to help their notebook shipments in the short term since the plant is rather small. Industry insiders however told us that they feel this may affect Dell, in that they will have to outsource their production to Foxconn in the long term to meet demand.

Dell have their main production plants in Malaysia while the Polish plant was basically just used for desktop production with a small area set aside for notebook manufacturing. Many insiders close to this transaction stated their bewilderment at the move because Foxconn are weak in the research and development sector (rather than production) and this plant will not make a difference in this regard.

Foxconn already supply notebooks to Hewlett Packard, Dell, Sony and even Apple with an estimated shipment rate of around 4 million in 2009 with a forecast of over 6 million in 2010.

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Stuart Davidson

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