Business Services Industry

New H-P strategy could put squeeze on its suppliers.

Australasian Business Intelligence, July, 2002

Jul 09, 2002 (The Asian Wall Street Journal

ABIX via COMTEX) -- A bidding competition among Asian suppliers is to be initiated by Hewlett-Packard. Those Asian suppliers include Quanta Computer, Compal Electronics, Arima Corporation, LG Electronics, Hon Hai Precision Industry, Tatung and Inventec Corporation. The move follows the merger of Hewlett-Packard and Compaq Computer Corporation. While the retention of all of the Asian suppliers of the two American-based computer companies is good news, the increase in competition will lead to pressure on margins and a decrease in prices for the suppliers. Most of the suppliers of the new Hewlett-Packard are based in Taiwan and South Korea.

Publication Date: 5 July 2002

HEWLETT-PACKARD COMPANY: QUANTA...

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