Dell Forcing Suppliers to Reduce Prices?

By Thursday, March 14, 2013 0 Permalink 0

Dell has not only asked its metal chassis suppliers, Fuyu Precision Component, which is Foxconn Group’s subsidiary company and Catcher Technology to cut down their prices, but in order to create pressure on its supply partners Dell is also planning to invite the Compal Precision Module, which is Ju Teng’s and Compal Electronics’ joint venture to become one of Dell’s major chassis suppliers.

Dell’s strategy is targeted at vendors who are ready to negotiate at favorable terms; however, Dell expects to rearrange its chassis supply orders by the month of April reports DigiTimes.

As Dell’s privatization plans aims to push up its PC shipments, the company will become more aggressive over the price cut only from its major upstream suppliers.

The Chassis maker companies have declined to comment anything about Dell’s decision.