Foxconn Joins Alliance to Focus on Ultra-Cheap Netbooks
Today, contract manufacturer Foxconn joined an alliance whose members seek to make ultra-low-cost PCs. The alliance members, which include chipmaker Via, plan to put out netbooks as well as laptops. And they are targeting an average selling price of $219. That’s quite low, considering that most netbooks sell for $300 to $400 today. Clearly, that’s more evidence that PC prices are falling, and that, during the current economic downturn, they could plummet much more severely than in the past. That’s bad news for companies like Hewlett-Packard, Dell and Acer, which will have to compete even more aggressively on price.