Foxconn Electronics (Hon Hai Precision Industry) has announced it will form a strategic alliance with channel retailer Synnex Technology International to focus on China's motherboard market.

Foxconn pointed out that the company will be able to acquire new clients and expand into new market through Synnex's channel system in China, while Synnex will be able to strength its position in China's DIY market with Foxconn's motherboards products in the future.

With the China IT channel entering the strong summer promotion month, the overall IT revenues in the third quarter is expected to grow 10-15% sequentially; however, Synnex, benefits from its new products, will see a growth 15-20% sequentially.

Through its successful experience in Taiwan's enterprise PC retail channel, Synnex is cooperating with China's local system integrators as well as major brand vendors including IBM, Hewlett-Packard (HP) and Lenovo to help raise its enterprise PC business' revenue contribution from originally 6% to 15%. As for the tablet PC business, with the top-10 brands including Apple, Samsung, Acer, Asustek Computer and Motorola are all its clients, it is expected to strongly benefit Synnex's revenues in the second half.

By: DocMemory
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