With shipments rising >50% from last year, Leadtek will outsource production to FoxconnOn the business front today, Leadtek Research's company chairman, KS Lu, has announced that they will be outsourcing production of their graphics cards entirely to Foxconn Electronics (the registered trade name of Hon Hai Precision Industry).
Last year, Leadtek managed to lower its costs by outsourcing more of its graphics-card manufacturing to Foxconn and bundling its products with Foxconn's motherboards. The company ended up reporting earnings per share (EPS) of NT$1.44 for the year, after reporting a negative EPS of NT$2.47 in 2003. Lu predicts that the rising contribution of videophones and GPS equipment will help the company increase its EPS further this year.
Well of course outsourcing is cheaper. I can attest to that, after spending hours on the phone with various companies. ;-) On a more serious note, this is good news. I've noticed that Leadtek has been making somewhat of a comeback in recent times. Terren reviewed a pair of their WinFast PX6600GT TDH cards in late January, and he had good things to say.
Article Link: Leadtek to outsource 100% of its graphics card production to Foxconn
