Motorola to outsource all sub-$350 smartphone production?

Motorola to outsource all sub-$350 smartphone production?

Not sure whether this is part of Motorola’s new strategy now that it’s being integrated into Google, but apparently the American handset maker decided to subcontract production of all of its orders for entry-level and mid-range smartphones with a price tag of below $300-350. From what we’ve understood, Foxconn International Holdings (FIH) and Arima Communications will benefit from this decision, with Foxconn getting to make up to 70-80% of new models to be released by Motorola in 2012.

Heck, they’ve already started outsourcing with the XT532 model, which most likely won’t be released outside of China. Foxconn got that contract, in case you wonder.

So the presumption is to leave the production of high-margin, high-end smartphones and tablets in house and let ODMs make the cheap stuff. Sounds like a plan…

[Via: DigiTimes]

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