Hon Hai loses notebook orders to smaller ODMs

Taiwanese notebook manufacturers Compal and Wistron have snatched big orders from giant Hon Hai because the ODM giant wants to make tablets and smartphones, not notebooks.

The Taiwan Economic News reports that HP and Dell have decided to give big orders to Wistron and Compal that were originally intended for Hon Hai.

But it’s not just a change of focus from Hon Hai that has caused multinationals Hewlett Packard and Dell to adjust their contracts for notebooks in 2012.

Hon Hai, according to the report, can’t match prices for notebook manufacturing any more and has raised rather than lowered prices. Meanwhile, it seems that another giant, Flextronics, isn’t going to make notebooks any more and that has caused dedicated players like Compal and Wistron to make hay while the sun shines.

Every cloud has a silver lining.