Apple cuts production

Apple has scaled down notebook production, suggesting the company expects lower sales than initially predicted, says SlashGear.

The move saw a 20% to 30% decrease in notebook outsourcing to Apple's main original equipment manufacturer (OEM) and hardware partner, Quanta Computer, according to a Chinese-language report in the Commercial Times.

The report suggests Asus has also reduced outsourcing from its primary OEM partner, Pegatron Technology. The company has estimated notebook shipments in Q4 2008 will only reach 1.7 million units.

The outsourcing industry is becoming more sophisticated and attracting more people with the best educational qualifications, including those in the legal profession, reports the BBC.

Tens of thousands of lawyers graduate in India every year and an increasing number are now taking on work from around the world, as companies look to cut costs wherever they can.

Matthew Banks, who works for Integreon, a Mumbai-based company engaged by the British legal firm Clifford Chance, says more legal work will be pushed in India's direction as bad economic news in Europe and the United States begins to bite. Legal work can be done in India for a fraction of the cost.

British toymaker Hornby, best known for its model-train sets, says the advantages of outsourcing production to China are being eroded by cost inflation, states the Financial Times.

The toy producer reported a fall in interim pre-tax profit from £2.7 million to £1.8 million and warned of "an increasingly challenging retail environment as we enter the critical Christmas trading period".

Chinese suppliers have struggled with the increased cost of raw materials, energy and labour. Hornby CEO Frank Martin said the situation had improved after the company agreed to a 10% price rise for its suppliers that took effect in August. A further 10% increase is scheduled for January.