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Kyocera moves handset manufacturing
Posted: 05-May-2005 [Source: Kyocera]

[Kyocera Wireless Corp. to outsource manufacture and delivery of CDMA handsets to Flextronics, International headquartered in Singapore.]

Kyoto -- Kyocera Corporation has been advancing the restructuring of its mobile communication equipment business primarily to further strengthen the business operations of Kyocera Wireless Corp. (KWC), a Kyocera group company in North America that specializes in the design and sales of CDMA mobile handsets. As part of this process, KWC has decided to outsource the manufacture and delivery of its products, and to sell certain manufacturing equipment and inventory to Flextronics International Ltd., one of the world's leading providers of electronics manufacturing services. The restructuring will enable KWC to focus on the R&D, engineering, design, sales and marketing of a wide portfolio of CDMA handsets to enhance its competitiveness in the market.

The Kyocera Group now develops, manufactures and sells CDMA handsets worldwide, providing approximately 13 million units per year in Japan, China, North America, Latin America, Australia, India, and other markets. As global competition is becoming more and more intensified in the mobile phone market, it is essential to develop products that will meet the market needs of each country as well as to enhance cost competitiveness of the entire business, in order to maintain the Kyocera Group's competitive superiority in its mobile handsets business.

By devoting its corporate resources to R&D, engineering, design, sales and marketing activities, Kyocera is aiming to further improve its product development capability and promote cooperation among its R&D centers in Japan, North America and India. Kyocera will supply products to meet the market needs of each country, maximizing its group's collective strengths; for example, utilizing hardware such as EV-DO cards and standardizing platforms. KWC has already commenced outsourcing its service and repair operations. By partnering with Flextronics, a leading manufacturer of mobile handsets for top OEMs, Kyocera's goal is to boost profits, reinforcing its business by leveraging the efficiencies provided by Flextronics' vertically integrated manufacturing model.

With strong sales and marketing forces, KWC has historically sold approximately 1 million mobile handsets per month, mainly in the Americas. Based on its expertise, the Kyocera Group aims to improve profits while reinforcing and growing its position in the global handset market, including rapidly growing markets like India and Latin America. The Kyocera Group forecasts mobile handset production for its Fiscal 2006 (ending March 31, 2006) at approximately 15 million units.

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