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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.690-0.4%3:50 PM EST
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To: James R. who wrote (600)3/31/1998 11:28:00 PM
From: j rector  Read Replies (1) of 1418
 
James,

Here is a question excerpted from one of Ron's posts:

The more general question -- how they manage to make 45% margins in assembly
operations --which are supposed to be low margin, competitive businesses just like
plastic injection molding -- is still of interest.

One of my main fears about DSWLF (really Kwanasia) is that their margins will erode
with time
as clients look for cheaper assembly. I know that DSWLF is known
for high-quality work, but how do they pull it off?
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