Kyocera to Outsource Handset Manufacturing
Kyocera Wireless is turning to Flextronics International to handle production of its CDMA handsets offered in the U.S. market. The move will enable Kyocera to focus more intently on R&D and design of its CDMA handset portfolio, the company says.
Although terms of the deal were not disclosed, Singapore-based Flextronics will manufacture and deliver Kyocera's CDMA handsets to market. Flextronics also plans to purchase certain manufacturing equipment and inventory from Kyocera.
Kyocera believes its deal with Flextronics will enable it to boost profits, while clearing a path for it to focus its corporate resources on R&D, engineering, design, sales and marketing activities.
This is not the first time Kyocera has turned to outsourcing. The company already farms out its service and repair operations. Authorized service centers in the Americas, Australia, New Zealand and India are beginning to handle service and repair for the company.
In January of this year, Kyocera said it planned to cut roughly 600 jobs at its San Diego, Calif.-based headquarters. The job cuts were a result of transitioning repair work out of California to the above-mentioned authorized service centers and a decision to shift manufacturing responsibilities to Mexico.