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Dell forcing supply chain to cut prices

Posted on Thursday, March 14 2013 @ 12:46:30 CET by

Dell logo
DigiTimes received word from sources from the upstream supply chain that Dell is demanding price cuts to help reduce its costs.
Dell has reportedly been demanding its upstream component suppliers cut their prices to help reduce its costs. Metal chassis suppliers, which have a higher price level than most other components, are the US brand vendor's first target, according to sources from the upstream supply chain.

In addition to asking its existing chassis suppliers, Catcher Technology and Fuyu Precision Component, a subsidiary of the Foxconn Group, to drop their prices, Dell also plans to invite Compal Precision Module, the joint-venture between Compal Electronics and Ju Teng, to become a major chassis supplier, creating pressure for its two partners, the sources noted.



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