Taiwan ODMs Feed Flextronics' Gains
TAIPEI -- Taiwanese original design manufacturers will contribute about $400 million in revenues to Flextronics International in fiscal 2006, the company's chief executive said yesterday, according to published reports.
Speaking in Taipei yesterday, Flextronics chief executive Michael Marks said sales centralization of brand products coupled with declining average selling prices of ODM products is opening the door for partnerships, DigiTimes reported.
Flextronics, the world's largest EMS company, gained about $100 million in revenues from Taiwanese ODMs in 2005, Marks said.
DigiTimes also reported that a Flextronics spokeswoman denied local reports that Flextronics would partner on IT products with Asustek Computer.
According to DigiTimes, Marks said that Flextronics is concentrating on improving profitability, not revenue growth.
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