Flextronics expects boost from outsourcing
By Jennifer Tan
Friday May 24, 3:37 AM
sg.news.yahoo.com
SINGAPORE (Reuters) - A strong outsourcing trend is bringing Flextronics International Ltd better business in its consumer electronics and computer segments, but a convincing recovery in tech spending remains elusive, the company says.
The Nasdaq-listed, Singapore-based provider of electronics manufacturing services makes high-volume, often low-margin products for brand name manufacturers, such as Microsoft Corp's Xbox game console and Ericsson handsets.
"Recently, we have been successful in consumer products and PCs, but a lot of it is just the trend to outsourcing, and is not that the segments are doing better, or that end markets are improving significantly," Executive Vice President Jim Sacherman told Reuters in a recent interview.
Sacherman said he remained concerned about telecommunications, which had been depressed.
"There's no strong indication that a recovery in that segment is happening yet, particularly in the larger products we manufacture, such as cellular base stations and switching equipment," he said. |
