Motorola to increase outsourcing of handsets in 2008, says paper

Motorola is expected to expand its outsourcing policy by increasing the ratio of ODM handsets to its total output to 50% in 2008 compared to 40% in 2007, according to a Chinese-language Commercial Times report.

Under the new outsourcing strategy, Motorola is expected to outsource 75-80 million handsets to ODM makers in the coming year, with more than 50 million units outsourced to Compal Communications and the rest of the handsets outsourced to Chi Mei Communications System (CMCS), the paper said.

Component suppliers, including Toppoly Optoelectronics (display), Wintek and Giantplus Technology (CTSN panels), Career Technology and Ichia Technology (flexible PCBs), Silitek (keypads) and Compeq Manufacturing and United Printed Circuit Board (PCBs), will also benefit from the increased outsourcing, noted the paper.

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