Rumor mill grinds on

According to Digitimes, the Chinese channel is abuzz with rumors of a possible Foxconn pullout from the branded motherboard market.

Sources claim that Foxconn has told its salespeople to stop taking orders for certain motherboard models and stop gathering sales forecasts for new models. Foxconn seems to be readying to clear its inventory, and it's doing it quietly.

Foxconn sales are doing well and the company managed to ship more than 10 million units in 2007, with sales expected to grow by as much as 30 percent in 2008.

In spite of these results, there's a chance Foxconn is looking to focus on more lucrative segments of the business and killing off its brand in the process.

Foxconn claims it hasn't heard the rumors yet.

More here.

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Trouble brewing at Foxconn