EMC Corp, the world's biggest maker of data-storage computers and programs, has started using Hon Hai Precision Industry Co (鴻海精密) as its first supplier of finished equipment.
"This is the first time that EMC's gone to a company to do subassembly, final assembly and test for everything," Steven Fitz, Asia Pacific president of EMC, said in an interview yesterday in Hong Kong. "There's a lot more potential for them to do a lot more for us." Hon Hai is making data-storage equipment selling for US$5,000 that EMC is selling to small and medium-sized business clients.
The new product is helping EMC win market share from its closest competitors, which are Hewlett-Packard Co in hardware and Veritas Software Corp in programs, according to Gartner Inc.
EMC's cheapest computer two years ago cost US$350,000. EMC may use Hon Hai, Taiwan's biggest electronics company, to make new products that sell for less than US$5,000, Fitz said. EMC chose Hon Hai as a supplier in part because both companies count Dell Inc and Intel Corp as business partners, according to Fitz.
Hon Hai competes with Singapore-based Flextronics International Ltd, the world's largest maker of electronics for other companies, and second-ranked Solectron Corp of Milpitas, California.