HP links with Taiwan producers

Hewlett-Packard (HP) has reportedly signed two major notebook manufacturing contracts in Taiwan - the first such deals since its merger with Compaq Computer in May.

In the first deal, The Economic Daily News reported that contract manufacturer Inventec is expected to ship 500,000 Pavilion notebook PCs to HP next year. Citing unnamed sources, the newspaper said this would mark the Taiwan firm's first venture into the consumer market.

The company was already contracted to deliver 1.5 million high-end laptops aimed at the business market. These will be produced under the HP Evo brand, and delivered next year.

In total, Inventec is expected to ship more than two million notebook PCs to HP next year. The report said HP's worldwide sales next year were estimated at 4.5 million to five million units.

Meanwhile, Taiwan's Commercial Times reported yesterday that Taipei-based original design manufacturer Arima Computer had won an order to supply HP with notebooks for the Christmas season.

Arima is expected to start delivering 20,000 to 30,000 notebook PCs to HP in November, with their retail price tag set at US$1,000 to US$1,100, the sources said. They will use Intel P4 processors and other components originally meant for desktop PCs, to cut back on costs.