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Nokia (NOK), Motorola (MMI) to Turn More to Taiwan for Manufacturing

February 10, 2012 10:55 AM EST
Outsourcing isn't just a problem in the U.S.; many global companies are turning to Asia as input and overhead costs continue to rise and pressure margins.

Three major electronics/mobile device companies -- Nokia (NYSE: NOK), Sony (NYSE: SNE), and Motorola Mobility (NYSE: MMI) -- are expected to shift large amounts of handset manufacturing to Taiwan-based original device manufacturers (ODMs), according to Digitimes Friday.

Earlier this week, Nokia announced it would layoff about 4,000 employees in Hungry, Mexico, and Finland, opting instead to shift manufacturing to Foxconn Int'l Holdings (FIH) and Compal Communications in Taiwan.

Motorola is also expected to strengthen ties with FIH and Arima Communications for continued manufacturing of Google (Nasdaq: GOOG) Android-based devices. Sony will begin work with Foxconn Electronics and Arima for low- and mid-range mobile devices. Of note, Foxconn Electronics also does work with Apple (Nasdaq: AAPL), competitor to Sony, Nokia, and Motorola.

Shares of all three companies -- and Apple -- are lower Friday following the continued turmoil in Greece over new austerity measures.


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