Hon Hai Precision to manufacture cheaper PS3s

Big Taiwanese consumer electronics company Hon Hai Precision (otherwise known as Foxconn in the PC hardware market) has reportedly sealed a deal with Sony to manufacture low-priced PlayStation 3 consoles. This move by Sony is similar to the pact it has with ASUSTeK in an aggressive plan to compete with rivals Nintendo and Microsoft.

According to website EMSNow, the alliance between Sony and Hon Hai will result in the cheaper manufacture of SKUs which will be introduced in the market some time soon.

This contract is a synergy to Sony’s bid to ship a target number of 10 million PS3s worldwide in the next few months. This will also supposedly bring down prices for the high-end console. Pricing is a key seen by many analysts to boost slow sales of the product in order to make it more competitive against Nintendo’s Wii and Microsoft’s Xbox 360.

Hon Hai is one of Taiwan‘s biggest and most respected players in the electronics industry, setting revenue records almost on a yearly basis in the island. Not many may know it, but Hon Hai caters even to giants such as Apple, Dell, Cisco, and Nokia. Recently, it has added Sony to that list.

The PlayStation 3 has had a US$ 100 price cut prior to this year’s E3 show in the United States, and new cuts are expected by industry insiders on the road to 2008, Sony’s earmarked year when its PS3 will come of age. The Hon Hai deal could be an indication that analysts may be right with their predictions.

Via EMSNow

Big Taiwanese consumer electronics company Hon Hai Precision (otherwise known as Foxconn in the PC hardware market) has reportedly sealed a deal with Sony to manufacture low-priced PlayStation 3 consoles. This move by Sony is similar to the pact it has with ASUSTeK in an aggressive plan to compete with rivals Nintendo and Microsoft.

According to website EMSNow, the alliance between Sony and Hon Hai will result in the cheaper manufacture of SKUs which will be introduced in the market some time soon.

This contract is a synergy to Sony’s bid to ship a target number of 10 million PS3s worldwide in the next few months. This will also supposedly bring down prices for the high-end console. Pricing is a key seen by many analysts to boost slow sales of the product in order to make it more competitive against Nintendo’s Wii and Microsoft’s Xbox 360.

Hon Hai is one of Taiwan‘s biggest and most respected players in the electronics industry, setting revenue records almost on a yearly basis in the island. Not many may know it, but Hon Hai caters even to giants such as Apple, Dell, Cisco, and Nokia. Recently, it has added Sony to that list.

The PlayStation 3 has had a US$ 100 price cut prior to this year’s E3 show in the United States, and new cuts are expected by industry insiders on the road to 2008, Sony’s earmarked year when its PS3 will come of age. The Hon Hai deal could be an indication that analysts may be right with their predictions.

Via EMSNow