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Electronics Production | May 05, 2008

Flextronics seeks new Dell product business

The EMS-provider Flextronics tries to win more work from Dell as the company outsources more business to contract manufacturers, cites <i>Reuters</i> the Flextronics' CFO.
Dell plans to enter new consumer markets oriented toward mobile users. According to analysts, it is also possible that the company will start to sell mobile phones.

New Dell products will include low-priced notebook computers. Dell has so far declined to comment on the phone speculation. However, the company also stated that the PC-based relationships with mobile wireless carriers have created new opportunities. Dell has "room to be a bit more experimental" with consumer products, Dell senior vice president Alex Gruzen told analysts at a briefing on April 3, reports The Guardian.

America-based OEM company Dell is changing its consumer business, which accounts for about 15% of its total revenue, since Ron Garriques, a former Motorola Inc executive, had been hired.

Dell had announced recently that it planned to outsource more design and manufacturing to EMS providers to cut costs. The company has been losing money from its PC business, ever since the company started to sell computers in stores.

Flextronics is also cooperating with HP (printers), Sony Ericsson (mobile phones). to compensate for the slow U.S. consumer sales with strong sales outside the United States, as well as adding new product categories.

A Dell spokesman was not immediately available for comment.

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