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Flextronics International (FLEX) |
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WIKI ANALYSIS
Flextronics International Ltd. (Flextronics) provides electronics manufacturing services to original equipment manufacturers (OEM). It also provides supporting supply chain services, including packaging and transportation throughout the world, as well as design and after-sales.
The company has established an extensive network of manufacturing facilities in the world’s major electronics markets (Asia, the Americas and Europe) in order to serve the growing outsourcing needs of both multinational and regional OEMs.
Some of its customers consist of many of the technology industry’s leaders, including Casio Computer (BER:CAC1), Cisco Systems (CSCO), Dell (DELL), Eastman Kodak Company (EK), LM Ericsson Telephone Company (ERIC), Hewlett-Packard (HPQ), Kyocera, Microsoft (MSFT), Motorola (MOT), Nortel Networks (NT), Sony-Ericsson and Xerox (XRX).
It is a provider of end to end, vertically integrated global supply chain services through which it designs, builds, and ships a complete packaged product for its OEM customers. Its vertically integrated capabilities provide its customers a competitive advantage in the market for designing and manufacturing electronic products.
Company Overview
Flextronics offers broad range of vertically integrated services to OEM and has expertise in the following markets:
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- Computing including desktop, handheld and notebook computers, electronic games and servers.
- Mobile communication devices of different platforms such as GSM, CDMA, TDMA and WCDMA.
- Consumer digital devices such as set top boxes, home entertainment equipment, printers, copiers and cameras.
- Industrial, Semiconductor and White Goods such as home appliances, industrial meters, bar code readers and test equipment.
- Automotive, Marine and Aerospace such as navigation instruments, radar components, and instrument panel and radio components.
- Telecommunications infrastructure such as cable modems, cellular base stations, hubs and switches.
- Medical devices such as drug delivery, diagnostic and telemedicine devices.
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Business Segments
Printed Circuit Board (PCB) and Flexible Circuit Fabrication
The Company’s high-density interconnect with its every layer inter connect (ELIC) technology, which is used in cell phone designs, and multilayer, which is used in advanced routers, computers, communication equipment, and flexible printed circuit boards and flexible circuit assemblies. It manufactures printed circuit boards on a low-volume, quick-turn basis, as well as on a high-volume production basis. It provides quick-turn prototype services that allow it to provide small test quantities to meet the needs of customers’ product development groups in as little as 48 hours. Flextronics offers a one stop solution from design to manufacturing of printed circuit board (PCB), flexible circuits and rigid flex circuits and sub-assemblies. It has printed circuit board service capabilities in North America, South America, Europe and Asia, and flexible circuit fabrication service capabilities in North America and Asia.
Display and Touch Solutions
The Company’s Display group is focused on designing and manufacturing complete Display and Touch products for its OEM customers. Its display platforms are based on two technologies. The first employs liquid crystal material sandwiched between two layers of glass to polarize light and provide a backlight system and color via a filter. The second technology, named bi-stable display technology, is based on E-Ink material. It can support small and medium size form factors, provide customized displays and has developed strategic partnerships with supply chain companies.
Optomechatronics (Camera Modules)
Flextronics Optomechatronics group designs and manufacturers products that combine optical, mechanical and electrical subsystems, such as miniaturized camera modules for mobile phone and notebook personal computer (PC) applications. Its capabilities include system engineering, lens and optical system design and manufacturing, and ultra-compact semiconductor packaging. It develops and invests in technologies for next generation products, such as micro electro mechanical systems for autofocus drive and actuation applications.
Power Supplies
The Company has a full service power supply business (Flex Power) specializing in high efficiency and high density power supplies ranging from 1 to 3,000 watts. The product portfolio spans the mobile phone, printer, mobile desktop, notebook and netbook markets along with the server and storage markets.
Logistics
Flextronics Global Services is a provider of after market supply chain logistics services. Its suite of services serve customers operating in the computing, consumer digital, infrastructure, industrial, mobile and medical markets. Its global infrastructure consists of 25 sites and more than 14,000 employees strategically located throughout the Americas, Europe and Asia. It provides multiple logistics solutions including supplier managed inventory, inbound freight management, product postponement, build/configure to order, order fulfillment and distribution, and supply chain network design.
Reverse Logistics & Repair Services
The Company offers a suite of integrated reverse logistics and repair solutions that are operated on globally consistent processes, which help its customers protect their brand loyalty in the marketplace by improving turnaround times and end customer satisfaction levels. provides repair expertise to multiple product lines, such as consumer and midrange products, printers, personal digital assistant (PDA’s), mobile phones, consumer medical devices, notebooks, PC’s, set-top boxes, game consoles and highly complex infrastructure products. Additionally, its after-sales services include its retail technical services (RTS) business. This business provides end user technical support in a number of market sectors, including consumer electronics, small to medium size business, computing, and mobile technology.
Customers
The customers of Flextronics include many of the world’s leading technology companies. The ten largest customers account for approximately 64% of net sales.
| Customers | End Products |
| Casio Computer Co., Ltd. | Consumer electronics products |
| Dell Computer Corporation | Desktop personal computers and servers |
| Ericsson Telecom AB | Business telecommunications systems and GSM infrastructure |
| Hewlett Packard Company | Inkjet printers and storage devices |
| Kyocera Wireless Corporation | Cellular phones |
| Microsoft Corporation | Computer peripherals and consumer electronics gaming products |
| Motorola, Inc. | Cellular phones and telecommunications infrastructure |
| Nortel Networks Limited | Optical, wireless and enterprise telecommunications infrastructure |
| Sony Ericsson | Cellular phones |
| Nortel Networks Limited | Optical, wireless and enterprise telecommunications infrastructure |
| Xerox Corporation | Office equipment and components |
Competition
EMS industry is extremely competitive and includes many companies. Several companies have achieved substantial market share. Flextronics compete against numerous domestic and foreign EMS providers, as well as its current and prospective customers.
References
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