Flextronics, the Singapore based design and manufacturing unit, has been producing consumer electronics goods for several years through a network spanning several countries. You may not have heard of the company but in all probability you have used a product they manufactured.
Now Flextronics has made headlines by inking a deal with HP for the production of 2 million netbooks at $45 per unit. Most manufacturers charge around $70 or more per unit. The deal, it seems, will force them into reducing their prices as well.
HP will save around $50 million on this order. But will their netbooks get cheaper? Well, there is no guarantee that HP will pass this savings on to the end user, but it might just happen.
Now Flextronics has made headlines by inking a deal with HP for the production of 2 million netbooks at $45 per unit. Most manufacturers charge around $70 or more per unit. The deal, it seems, will force them into reducing their prices as well.
HP will save around $50 million on this order. But will their netbooks get cheaper? Well, there is no guarantee that HP will pass this savings on to the end user, but it might just happen.
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