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Electronics Production | February 20, 2009

HP’s weak result puts pressure on EMS-providers

Both EMS-providers such as Celestica, Jabil and Flextronics and distributors such as Avnet and Arrow could face pressure from the weak result that electronics company HP posted yesterday.
Flextronics is manufacturing printers, storage devices, notebook PCS and servers for HP, all of which stands for just under 10% of the company’s revenue. Jabil manufactures servers and printers and the electronics giant is one of its Top10 customers, according to Barron’s. Celestica manufactures servers, storage products and printer cartridges and again HP ranks in the Top10 of customers.

As for distributors, Avnet as well as Arrow, both make around 10% of their revenue with HP.

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