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http://www.insanely-great.com/news.php?id=472
OEM news: Hon Hai nicks Quanta iMac orders
By ron carlson, Insanely Great Mac
May 28th 2002
Apple is adjusting OEM contracts for LCD iMacs and the LCDs used in its PowerBooks
Nikkei Asia Biz Tech reports that Apple is shifting new iMac production from Quanta,
which also manufactures PowerBooks, to Hon Hai Precision. According to the story, the
shift is the result of Quanta''s failure to acquire some patented key components from
Hon Hai.
This appears to be a power play on Hon Hai''s part to regain iMac orders. The company
had developed patented parts during the time it manufactured CRT-based iMacs and
reportedly would not allow Quanta to license or acquire those patents.
Hon Hai, known in the US as Foxconn, is a long-time manufacturer of CRT-iMacs and
likely the maker of Apple''s eMac.
The report also indicates that Apple expects to sell 1.5 million LCD iMacs this year
in the US. Unnamed industry insiders say that Cupertino''s latest consumer desktop
likely costs US$800 to US$1,000 per unit to manufacture.
Quanta reportedly contracted to supply 600,000 units this year. This leaves 900,000
units unaccounted for therefore begging the question of who is supplying these units.
Hon Hai
PB LCD order shift?
The China Times reports that AU Optronics has announced its plans to make 15.2-inch
LCDs for Apple''s G4 PowerBooks. Like other display makers, AU is focussing on the
notebook segment where margins are better.
According to experts, the 15.2-inch panel specified by Apple will sport a max.
resolution of 1,280 x 754 and cost more than standard 15-inch (1024 x768) LCDs
(US$305).
AU is still in the process of adjusting production processes and has yet to be
qualified by Apple engineers, so it isn''t yet certain the company will indeed win any
orders from Cupertino.
Analysis: Apple''s production machine is by all external indications running smoothly
and these behind the scenes moves represent tuning of the process. AU''s attempt to
produce 15.2-inch LCDs for Apple could signal that the company''s current supplier is
having difficulty producing stable supplies. It could also be an attempt by Apple to
diversify its sources.
Hon Hai''s apparent iMac coup -- if indeed that is what has happened -- will likely
reflect the state of iMac production for the year. Further, Hon Hai is a long-time Mac
supplier and that bodes well for the stability of its relationship with Apple.
Post your comments at:
http://www.insanely-great.com/news.php?id=472
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