Foxconn to quit branded motherboard market?

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The Chinese channel is filled with rumors today of a possible Foxconn pull out from the branded motherboard market. According to DigiTimes, Foxconn has told its salespeople to stop taking orders for certain motherboard models and stop gathering sales forecasts for new models, implying that the company is clearing out its inventory.

Foxconn is not commenting on the rumors, and sources claim it is unlikely to do so as the firm would rather keep a low profile and avoid jeopardizing the inventory clearing. Interestingly, Foxconn sales are doing well, with the company shipping more than 10 million units in 2007 and sales expected to grow by as much as 30 percent in 2008. Regardless, Foxconn may be looking to focus on more lucrative segments of the business, such as making boards (and all kinds of other products) for other firms on a contract basis.

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