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Foxconn Channel might close this year

by on11 November 2008


The rumor mill churns

Although some of our sources have told us that Foxconn Channel was going to be given the chance to get profitable until Q2'09, now we're hearing that this might not be the case after all. The interesting fact here is that Asus is involved and is trying to get Foxconn to pull out of the channel market sooner rather than later.

We haven't managed to verify this information as yet, but we're hearing about an off-the-table deal among some people very high up in Asus and Foxconn. Asus wants Foxconn to pull out of the channel business and the sooner the better, but on the other hand, it seems like Asus is keen to off-load some of its OEM business.

The rumor is that if Foxconn Channel is closed down before the end of this year, then Foxconn will be given a favorable option to purchase Pegatron from Asus. As Foxconn is mainly an OEM/ODM manufacturer this might seem like a good deal for Foxconn, and Asus will get a nice cash injection that it can invest into its retail branded product lines.

Time will tell if there's any truth to this rumor, but our source is generally correct when it comes to these kinds of things. In saying that, Foxconn might want to stay in the channel business and all, depending on how good a deal Asus is offering Foxconn to purchase Pegatron for, they might not feel it being worthwhile.
Last modified on 12 November 2008
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