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Foxconn, a subsidiary of the contract electronics maker Foxconn Technology Group (Hon Hai Precision Industry), does not have plans to quit the channel business amid the global economic recession, the company said. The only changes that will happen to the channel business unit will be reduced operational expenses.

“We are not quitting the channel business, we are still here,” a spokesperson for Foxconn told TweakTown web-site.

Late last year rumours transpired that Foxconn may acquire Pegatron Technologies, a spin-off from Asustek Computer that makes various hardware on contract basis, but in exchange, Foxconn will reportedly have to quit retail and channel business. The deal has never been officially announced. However, Foxconn has managed to land orders from HP, the world’s No. 1 supplier of personal computers, who previously contracted Pegatron.

At present Foxconn is working to reduce operational expenses of its channel business and is mostly focusing on sales, rather than marketing or advertising. As a result, the company may also reduce investments into research and development so that to address broader markets with lowered pricing.

Last year Foxconn virtually stopped to make own-brand graphics cards, an important business in the channel/retail market. At present Foxconn’s channel business is concentrated around selling mainboards, even though the lineup also includes some cases, coolers, etc.

Tags: Foxconn, Asustek, Pegatron

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