MSI Outsources Notebooks and All-in-One PCs to Pegatron

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Micro-Star International (MSI) has outsourced the production of its own-brand 15.6-inch Sandy Bridge notebook, the CX640, to Pegatron Technology in order to shore up its profitability. MSI expects its combined shipments of notebooks and netbooks in 2011 to grow 10-15% from 2.8 million units shipped in 2010. To further lower its production costs, MSI has also begun to outsource some of its orders for all-in-one (AIO) PCs to Pegatron. If cooperation between the two companies goes smoothly, MSI is also likely to subcontract the production of tablet PCs to Pegatron, the sources noted.

MSI Wind U160 Notebook

With MSI adopting a strategy to promote both own-brand and OEM notebook businesses, production costs for notebooks have been relatively high for the company due to unfavorable production scale, commented industry sources.

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