Sony Ericsson Outsources Handset Production

Sony Ericsson is reportedly outsourcing production of its basic handsets to Taiwan. Arima Communications and Chi Mei Communication Systems (CMCS) will handle production of the T270, T280 and R306 Radio, among others.

Arima will handle the production of Sony Ericsson's T270, T280 as well as R300 Radio, whereas CMCS will manufacture the R306 Radio, the sources noted. Sony Ericsson has announced that the T270 and T280 will be available in the first quarter of this year, followed by the R300 in the second quarter and the R306 in the third quarter.

Total shipments are expected to reach 18 million units in 2008.

Sony Ericsson had some highs and lows last year: it managed to sell more than a hundred million units overall but suffered a profit decline during the holiday season. The iPhone's 4 million units is sure to have been a factor to those numbers. Any manager will tell you that outsourcing is an effective way of cutting costs, regardless of whether it's a product or a service, so Sony's move here is a logical one. Hopefully, the decrease in costs give Sony more room to invest in new technologies and further improve its product line.

Source: DigiTimes

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