Acer has again stepped up its outsourcing of desktop PCs to Foxconn Electronics (Hon Hai Precision Industry) after the giant EMS firm pledged it will grant full support in production while moving the main production base into inland China, according to industry sources.
Acer previously outsourced the production of its desktop PCs mainly to Foxconn, Wistron and Elitegroup Computer Systems (ECS), while purchasing all-in-one (AIO) PCs from Quanta Computer and Wistron, the sources noted.
Fearing that Foxconn's move to relocate its main production base to inland China could jeopardize its shipments, Acer switched some desktop orders that it would have placed with Foxconn to Wistron, the sources explained.
However, Foxconn has recently completed a new assembly plant in Huizhou (Guangdong), China and promised to render full production support to Acer, thus winning back some orders, said the sources.
Acer and Foxconn both declined to comment on market reports.
Foxconn is also likely to land AIO PC orders from Acer as the vendor is reportedly looking for an additional ODM partner for its expanded AIO product line, the sources indicated.
Acer saw its shipments of desktop PCs grow over 10% to 8.41 million units in 2010, according to IDC data.
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