Dell turns to TaiwanBy
As the bad news at Dell gets worse, its dependence on Taiwanese suppliers is increasing. Kevin Rollins, the CEO of Dell, was in Taiwan yesterday and told reporters that the company will buy at least $12 billion in components from the island’s electronics companies; that’s a 20% increase over last year. That should have been good news for companies like Quanta Computer and Compal Electronics, which make most of the world’s notebook PCs and are big suppliers to Dell. But shares of Quanta and Compal dropped sharply today, despite the announcement by Rollins, since the news about sourcing from Taiwan came on the same day that Dell also revealed that it would miss its profit forecast for the first quarter. Dell's profit, the company said, would come in at 33 cents a share, compared to a projected range of 36 to 38 cents.
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