Foxconn lands ‘local king’

Taiwanese manufacturing colossus Foxconn has teamed up with Almasa IT Distribution. Almasa will carry Foxconn’s range of motherboards, chassis, coolers, and multimedia card readers region wide, with a view to adding LCD and ODD lines in the coming months.

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By  Alex Malouf Published  January 5, 2005

Taiwanese manufacturing colossus Foxconn has teamed up with Almasa IT Distribution. Almasa will carry Foxconn’s range of motherboards, chassis, coolers, and multimedia card readers region wide, with a view to adding LCD and ODD lines in the coming months. “Almasa is expanding at a rapid rate and wanted to add major Taiwanese names to their portfolio,” said David Shih, managing director at Foxconn Middle East. “Foxconn was looking for a ‘local king’: a distribution powerhouse. The tie-up with Almasa made sense.” The deal hammered out by the two companies will give Almasa much more muscle in the components space. Foxconn is a Taiwanese behemoth with sales of US$14bn last year, mostly derived from OEM sales. By developing a brand name in the Middle East, Shih claims that Foxconn and Almasa both stand to benefit. “Roughly 90% of our products are OEM, for major names like Intel, Dell and IBM. We concentrated on this business in the past but competition has forced us into a rethink. With our own name, the quality of our products and Almasa distributing, we can enjoy healthy margins,” he added. Rival Taiwanese vendors Asus and Gigabyte dominate the region’s components landscape, but Shih is eager to take on the competition and become the Middle East’s number one supplier of components. “Asus and Gigabyte are very strong in the channel. Our mission is simple — we want to devour the market, and take as much share from our rivals as possible.” Note that Almasa currently carries a variety of Asus products. Jessica Chen, Foxconn product manager, claimed that Almasa could distribute for both vendors: “I believe there is no conflict of interest as Asus has been in the market for some time. We are confident of doing well with Foxconn and look forward to pushing the brand.”

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