Kyocera to Outsource 80% of Mobile Phone Production

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May 10, 2005 18:07

Kyocera Corp. has decided to outsource production of its CDMA handsets for the North American market to Flextronics International Ltd. As part of the plan, Kyocera Wireless Corp. (KWC), a Kyocera group company in the US, will sell its mobile phone manufacturing equipment and inventory in Mexico to Flextronics. The outsourcing of the production will enable KWC to focus more intently on R&D, design, sales and marketing.

Besides Mexico, the Kyocera group also owns CDMA handset manufacturing plants in Japan and China. The three plants manufacture about 13 million mobile phones per year. The Mexico plant provides about 10 million units, approximately 80% of the entire production. The group aims to manufacture 15 million units in FY2005 by boosting sales in India and in Central and South America.

Takahiro Kikuchi, Nikkei Electronics

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