01.17.2001
API and DBTel to benefit from Motorola closure
Motorola (U.S.) will close its biggest handset production factory in America as profit
margins for 2G and 2.5G plummet. In 2000, Acer Peripherals Inc.(2352 Ming Ji)
and DBTel (5304 Da Ba) each accounted for only 3-5% of Motorolas total
handset production. We expect more outsourcing ODM contracts to be granted to Taiwan in
coming years, but that the impact will be minor as profit margins for manufacturing
handsets have fallen to around 10% recently.
Benny Lo |