Hewlett-Packard's announcement that it will stop selling WebOS-based smartphones and tablet PCs is expected to have a strong impact on its hardware production partners in Taiwan, according to industry sources.
Due to concerns of the availability of WebOS mobile devices in the future, HP's partners in the channel will clear out their inventories immediately and stop selling the devices soon, forcing HP to cut off follow-up orders, if any, the sources noted.
HP is currently outsourcing the production of WebOS smartphones to Foxconn Electronics (Hon Hai Precision Industries) and Compal Communications, while outsourcing the TouchPad tablet PCs to Inventec, indicated the sources, noting that the three companies will be forced to adjust their production lines.
Inventec is also producing servers for HP, and therefore, HP's decision to perhaps spin off its PC business will also affect HP's server orders to Inventec, the sources added.
Article translated by Steve Shen
