Hewlett-Packard, Compaq Ask Suppliers to Cut Prices, Paper Says
By George Hsu
Taipei, March 1 (Bloomberg) -- Hewlett-Packard Co., the second-biggest computer maker seeking to take over rival Compaq Computer Corp., wants Quanta Computer Inc. and other Taiwan computer manufacturers to lower prices, Economic Daily News said.
Compaq also asked the companies to lower prices so they would stand a better chance of remaining as suppliers after Hewlett- Packard's takeover, the report said, citing unidentified sources.
Hewlett-Packard plans to order NT$17.5 billion ($498 million) of computers from First International Computer Inc. and at least 1 million notebook computers from Quanta this year, the paper said.
Taiwan manufacturers of computers for other companies are expected to benefit as declining sales for personal computers worldwide forces companies such Hewlett-Packard and Compaq to farm out more of their production to cut costs. |
