Feeds

HP outsources more PC ops

Lines up Sanmina-SCI as buyer

  • alert
  • submit to reddit

Mobile application security vulnerability report

Hewlett-Packard wants to outsource its PC manufacturing facility in France, and it has a buyer already lined up. This is Sanmina-SCI, the contract electronics manufacturer which last week, announced its intention to buy IBM's PC manufacturing business in the US and Europe.

The deal has to be squared with the French unions, but there is always the unspoken threat of closure. HP says it is also considering outsourcing other PC ops, but it does not say where.

HP is keen to emphasise that it's been outsourcing aspects of its PC operations since 1993. In other words, it's business as usual, the company would have you believe. This is true, in the respect that PC maker do not need vertically-integrated operations to retain their status as "manufacturers". In the networking equipment world, no-one questions, say, Nortel's position as a manufacturer, even though its enterprise and wireless parts are made by Sanmina-SCI.

But HP's outsourcing plans, like IBM, shows the huge pressure on the major PC brands to contain costs. Slack markets and mighty Dell are to blame for this. HP of course wants to build economies of scale by merging its PC business with that of Compaq. Even if shareholders vote in favoure of its proposed takeover, the deal may be on hold for four months, while it is scrutinised by EU regulators.

Presumably, one of the cost-efficiencies - of combining PC production - will be lost. Unless Compaq flogs its manufacturing facilities to Sanmina-SCI too.

IBM outsources Netvista PC ops
Compaq shows signs of recovery

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.