I'm very excited by the future growth in handheld devices that will be used on wireless networks. It looks like this market is going to unfold into a growth pattern that could equal PC sales. Certainly, it's going to change the dynamic of how business runs.
I'm very tempted to take a position Nokia or Qualcomm. It seems like these companies are very well-positioned. At the same time, I wonder why Dell hasn't become involved in this market? It certainly looks like it would be a good deal for them to be selling handheld smart phones to their corporate clients.
To another topic, is the time for widespread use of GPS near hand? the use of GPS in all these mobile computers, be they in a car or in your pocket, should provide a myriad of interesting possibilities. Have you heard the one where you point your cell phone at a business and then a description of what they do is displayed on the screen?
Solectron, Trimble Set GPS Deal
Contractor to buy OEMs Sunnyvale manufacturing assets for GPS products in 3-year outsourcing pact
By Bernard Levine
Sunnyvale, Calif.--Top-ranked contract manufacturer Solectron remains in the expansion mode, signing a letter of intent to acquire the GPS manufacturing assets of Trimble here. Trimble is a leader in radio frequency (RF) products enabled by global positioning system (GPS) technology.
Solectron is to assume full manufacturing responsibility for all of Trimble's GPS and related RF technology products here under a three year outsourcing deal. Trimble will continue to manufacture GPS products elsewhere.
The deal is set as a cash transaction, but further financial details were not provided. The plan is subject to negotiation and completion of a definitive agreement.
"As a result of this partnership, Solectron will enter the rapidly growing GPS market and significantly expand our global RF design and manufacturing expertise," said Ko Nishimura, Solectron's chairman, president and chief executive officer. "Our intent is to integrate the Trimble operation into our existing California campus within six to 12 months, to leverage efficiencies and resources. The GPS market is a new sector for Solectron and we are pleased to partner with the global leader in this industry and at the same time grow our balanced customer portfolio."
Meanwhile at Trimble, the firm "is pleased to have chosen Solectron as our manufacturing partner. As an international leader in the electronic manufacturing services industry, we intend to leverage Solectron's purchasing power and manufacturing efficiencies to lower production costs," said Steven W. Berglund, Trimble's president and CEO. "We also believe that Solectron will bring new levels of sophistication in the areas of quality and supply-chain responsiveness. In return, Trimble can strengthen its focus on meeting customers' needs with superior product design, support and service."
As part of the proposed agreement, Solectron will provide Trimble a full range of integrated services across the product life cycle including: design consultation, prototyping, new product introduction management and volume printed circuit board and systems assembly for the next three years.
Solectron intends to offer employment to the 250 manufacturing-related Trimble employees here. Other employees are to remain with Trimble. Solectron will also assume certain assets including manufacturing and test equipment and inventory, and will begin manufacturing operations in a leased 85,000 square-foot building on the Trimble campus.
Trimble provides end-user and OEM solutions for applications including surveying, mapping/GIS, agriculture, mining, military, commercial aviation, automotive, vehicle tracking and timing. It was founded in 1978, and now holds more than 200 U.S. patents on GPS and related technology, with over 180 additional patents pending.
Solectron recently surpassed SCI as the number one contractor in revenues. It has made a string of OEM acquisition deals in recent months with IBM and others.
Regards, Mark |
