14 DAY TRIAL // Finnish mobile phone maker Nokia is reportedly planning to halve the number of accessory suppliers it works with. The company has ten such partners at the moment; yet, it seems that their number will soon go down to only five, as it aims at reducing its production costs and at benefiting from a stronger management efficiency when it comes to its supply chain.
According to a recent article on DigiTimes, which cites “sources at Taiwan's handset component makers,” Nokia aims at reducing the number of suppliers based on their technology, quality control, delivery and finance performance. Moreover, it seems that the move is likely to affect the companies that provide it with power supply devices, hands-free and Bluetooth-enabled headsets, and speakers.
There are seven or eight companies that provide such components to the Finnish handset vendor, including Japan-based Foster Electric, US-based Plantronics and Taiwan-based Merry Electronics and Foxlink, DigiTimes notes. However, the upcoming move is expected to result in a number of only three or four companies that will continue to deliver the components to Nokia.
Merry Electronics is currently supplying the leading phone maker with hands-free devices. Yet, it seems that the company might soon start to provide it with Bluetooth headsets and speakers too. At the same time, the sources are also cited stating that Taiwanese handset battery charger makers Phihong Technology and Lite-On Technology should see a larger amount of orders coming from Nokia in 2010, due to the fact that China-based BYD had to recall a batch of flawed battery chargers last year.
“In addition, Nokia is also expected to continue cutting suppliers for handset components and parts in 2010, asserted the sources, noting that current component suppliers, including Lite-On Technology (power supply devices), Silitech Technology (cases), Largan Precision (camera modules) and Foxlink (connectors) are likely to receive windfall orders from Nokia,” DigiTimes also states.