Hewlett-Packard (HP) is reportedly considering cooperating with Flextronics for product manufacturing for the Brazil market, as the US-based vendor is said to be adopting a new business strategy for emerging markets and will find manufacturers with local facilities to produce products for them in order to have more flexibility, according to sources from the upstream supply chain.

　　Currently, HP has its global purchasing department handle all of its product planning and R&D, and then starts the request for quotation (RFQ) process for ODMs to bid on product orders. After shipments are ready, HP's branches worldwide then confirm with headquarters for the product models and shipment volumes they need. However, such a process has always created a disagreement between headquarters and the branches, as some of product features may not match demand needs from local costumers.

　　HP used to be a top notebook vendors in Brazil, but its ranking has recently started to drop. The vendor was the eighth largest in the country in the second quarter, far below competitors such as Positivo, Acer and Samsung in terms of market share, the sources noted, citing figures from IDC.

　　To regain its share in the Brazil market and release products that suit local consumers, HP is considering to work with Flextronics, which has production lines in Manaus, Sorocaba and Sao Paulo, Brazil. However, Flextronics' lack of notebook R&D ability could be an issue.

　　Samsung was the third-largest notebook vendor in Brazil in the second quarter of 2013, down from the largest, due to changes in marketing strategy and executives in early 2013. Positivo returned as the largest vendor in the quarter with shipments of 420,000 units. Acer shipped 330,000 notebooks and Samsung 284,000 units.

　　HP shipped 82,000 units in the second quarter, down significantly from 189,000 units in the third quarter of 2012. Lenovo was the fourth-largest with 210,000 units.