Rumor: Lenovo to Halt Pegatron Outsourcing

CCID, 12/27/08

Taiwan's China Business Times has reported that computer maker Lenovo (0992.HK) is currently considering canceling the outsourcing of notebook computer production to Pegatron Technology starting from next year. The report cites problems with shipping volume, quality control, and also Pegatron's relationship with rival computer manufacturer Asus (Pegatron is one of Asus' subsidiaries) as important factors for Lenovo.

Lenovo is Pegatron Technology's second largest customer, and Lenovo outsourced the production of over 2 mln notebook computers to the company in 2008.

Pegatron Technology denied the rumors, insisting that relations with Lenovo are healthy and stable.

Keywords: contract manufacturer 0992.HK hardware Lenovo notebook Pegatron computer

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