Microsoft asks component suppliers to lower prices

James Delahunty
26 Jan 2007 18:06

Microsoft Corp. is currently investigating ways in which the company can become more cost competitive with its Xbox 360 console. One of the ways in which the company hopes to achieve success is asking the component makers for a price reduction. Specifically, the Redmond-based firm has requested its component makers and EMS providers to lower their component quotes by an average of 5-15% on a quarterly basis.
Microsoft is also investigating the cost competitiveness of Taiwan-based manufacturers of optical disc drives for its HD DVD add-on. Sources say Lite-On IT is the most likely beneficiary. Lite-On IT declined to comment, citing client confidentiality.
Source:
DigiTimes

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