Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Electronics Production |

Sanmina-SCI, 70% chance to keep IBM PC's

IBM recently announced a $1.75 billion sale of its PC business to China based Lenovo. IBM is currently Sanmina-SCI’s largest largest customer. According to Credit Suisse First Boston, Sanmina-SCI has a 70% chance of retaining its original manufacturing deal with IBM.

Sanmina-SCI's provides final-assembly services for IBM in markets where Lenovo has no presence and Sanmina-SCI has an existing relationship with Lenovo. One of the locations of the PC business will be in a location where Sanmina-SCI already builds PCs for IBM. The worst case scenario for Sanmina-SCI would be to lose its business with IBM/Lenovo. Credit Suisse First Boston suggests that under this scenario revenue growth in 2006 would be cut by 60%.

Ad
Ad
Load more news
March 28 2024 10:16 am V22.4.20-1
Ad
Ad