Printed from http://www.electronista.com

Samsung may be ready to buy HP's PC business, outsource work

updated 11:40 pm EDT, Mon August 22, 2011

Samsung outsourcing in hints of HP hopes

Samsung might be grooming its notebook business in hopes of buying HP's spun-out PC business. Insiders in the part stream claimed Samsung was talking to Taiwan companies to outsource some notebook orders to companies like Compal, Pegatron, or Quanta in what could be the first step of handling HP's work. As HP moves over 40 million PCs a year, it would need those suppliers to keep production going, especially as Taiwan's suppliers are good at keeping costs under control, Digitimes was told.

The company supposedly brought all three suppliers over to Korea with a "cautious attitude," the contacts said, that hinted at expansion.

Some logistics could get in the way of the deal. At the least, Samsung would have to adapt its very tightly integrated supply chain into Taiwan, beyond its Chinese mainland area. Quanta, being unusually frank, said that a Samsung buyout of HP's PC resources would also mean having to take on several times more orders, peaking at 50 million to 60 million. Many of those orders are locked in through to 2012 and wouldn't let Samsung easily back out.

Samsung might have a vested interest in buying HP. The company is one of the faster-moving PC builders in the world and had some growth in Europe. It still has yet to dislodge Apple, Dell, HP, and others from higher positions in the market. Taking on the top PC maker would, if it could preserve sales, immediately catapult it to the top spot.

If not for an HP deal, the outsourcing could still be a sign Samsung was expecting fast enough growth that its existing production lines wouldn't be enough to handle the output.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +5

    Why not Lenovo?

    Lenovo's factories are already in mainland China. No need to "outsource" anything. Lenovo could use the former HP factories to expand production of their ThinkPad laptops and ThinkCentre desktops.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +1

    Is HP really in such a rush to

    dump its PC business? I thought they were just considering it. It sure seems risky for Samsung to take over a possibly dying Wintel PC business. I'm not saying it is actually dying, but is in a terrible slump that could last for quite a while.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Advertisement

Recent Reviews

Brother HL-L8250CDN Color Laser Printer

When it comes to selecting a printer, it's not exactly something most people put a lot of thought into. Printers are often touted as f ...

Moshi iVisor AG and XT for iPad Air 2

Have you ever tried to put in a screen protector that relies on static to cling to the screen? How many bubbles and wrinkles does it h ...

Epson PowerLite Home Cinema 3500 projector

Trying to find the perfect projector for a home theater can be tricky, as there are bountiful options on the market from a large numbe ...

Advertisement

toggle

Most Commented

 
toggle

Popular News