Flextronics International (FLEX)

• Article
• Discussion
• Edit
• History
• Bookmark

Bulls: Reasons To Buy Feeling Bullish? Be the first to explain why this would make a good investment Bears: Reasons To Sell Feeling Bearish? Be the first to explain why this would make a poor investment Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

Top Contributors Bull Rocky

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. It caters to following markets:

• 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; and
• Medical devices such as drug delivery, diagnostic and telemedicine devices.

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, Cisco Systems, Dell, Eastman Kodak, Ericsson, Hewlett Packard, Kyocera, Microsoft, Motorola, Nortel, Sony Ericsson and Xerox.

It is a provider of end to end, vertically integrated global supply chain services through which it design, build, and ships a complete packaged product for its OEM customers. Its services include:

• Printed Circuit Board and Flexible Circuit Fabrication;
• Systems Assembly and Manufacturing;
• Logistics;
• After Sales Services;
• Design and Engineering Services;
• Original Design Manufacturing (“ODM”) Services; and
• Components Design and Manufacturing.

Its vertically integrated capabilities provide them a competitive advantage in the market for designing and manufacturing electronic products.

On 4th June 2007, Flextronics offered to purchase Solectron for US$3.6b and thus making Solectron a subsidiary of Flextronics.

[edit] INDUSTRY OVERVIEW

The market for EMS is growing due to many reasons such as competitive nature of the electronics industry, increasing complexity pressure on OEMs to reduce costs, and shorter product life cycles. Utilizing EMS providers allows OEMs to take advantage of the global design, manufacturing and supply chain management expertise of EMS providers, and enables OEMs to concentrate on product research, development, marketing and sales.

[edit] SERVICE OFFERINGS

Flextronics offers broad range of vertically integrated services to OEMs.

[edit] Printed Circuit Board and Flexible Circuit Fabrication

Printed circuit boards are platforms composed of laminated materials that provide the interconnection for integrated circuits and other electronic components. The company manufactures printed circuit boards on a low volume, quick turn basis, as well as on a high volume production basis.

[edit] Systems Assembly and Manufacturing

The Company assembles electronics products with its proprietary printed circuit boards and custom electronic enclosures on either a build to order or configure to order basis. In these operations, it employ just−in−time, ship to stock and ship to line programs, continuous flow manufacturing, demand flow processes, and statistical process controls.

[edit] Logistics

The companies provide global logistics services and turnkey supply chain solutions to our customers. Its worldwide logistics services include freight forwarding, warehousing/inventory management and outbound/ eCommerce solutions through our global supply chain network.

[edit] After Sales Services

The company provide a range of after sales services, including product repair, remanufacturing and maintenance at repair depots, logistics and parts management, returns processing, warehousing, and engineering change management.

[edit] Design and Engineering Services

The Company offers a comprehensive range of value-added design and engineering market specific services for our customers. These services range from contract design services (CDS), where the customer purchases services on a time and materials basis, to original product design and manufacturing services where the customer purchases a product that is designed.

[edit] Components Design and Manufacturing

Its components group is a product driven organization focused on developing complete products for its OEM customers. Its capabilities include the design and manufacture of technologically advanced subsystem solutions for the electronics market.

[edit] CUSTOMERS

The customers of Flextronics include many of the world’s leading technology companies. In fiscal year 2007, ten largest customers accounted for approximately 64% of net sales. The largest customer during fiscal year 2007 was Sony Ericsson and it accounted for more than 10% of net sales. No other customer accounted for more than 10% of net sales. Some of the customers and their end products are as follows:

[edit] 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.

[edit] References