Electronics Production | February 11, 2008
Salcomp sees no threat from<br>Flextronics’ Friwo acquisition
Finland based manufacturer of power supplies for mobile phones and other personal handheld devices, Salcomp Oy, said it does not see any threat from Flextronics’ plans to acquire German rival Friwo.
Salcom CEO Markku Hangasjarvi told Reuters he does not expect Flextronics to lower their prices in an effort to gain more market shares. All customers don’t want more than four suppliers of power supplies making it difficult for one single company to increase its market share. Mr. Hangasjarvi also think Flextronics will keep Friwos’ three plants in Germany in full service thus Flextronics would not have offered such a large sum if their intention wasn’t to keep the plants. Reuters said Salcomp currently has a global market share of 24 percent of the mobile phone charger market. Friwo has a market share of 25 percent. He expects the charger market to grow at a rate of about 130 million units per year.