Microsoft reduces Surface chassis suppliers; may adopt similar strategy for other components
Aaron Lee, Taipei; Joseph Tsai, DIGITIMES [Monday 1 September 2014]

Microsoft has recently reduced the number of chassis suppliers for its Surface tablets and is now outsourcing all the orders to Ju Teng. Microsoft stopped placing chassis orders with its China-based supplier in August, according to sources from the upstream supply chain.

The source pointed out that Microsoft may also adopt a similar strategy for other components and therefore, they are closely monitoring the software giant’s moves.

Since Surface tablets only have limited sales, separating orders to multiple suppliers is not helping Microsoft negotiate for favorable prices.

Ju Teng declined to comment on its orders, but said that the tablet chassis revenue contributions will rise from 20% to 35% in the second half of 2014, while the proportion for notebook chassis will drop from 75% to 60%.

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