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Microsoft may increase smartphone outsourcing as it closes China plants

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    Microsoft may increase smartphone outsourcing as it closes China plants

    Lowering production costs is fine, but will we ever see high quality flagship windows phones that can compete with the top sellers?

    Daniel Shen, Taipei; Steve Shen, DIGITIMES [Thursday 16 July 2015]

    Microsoft has closed its China-based handset manufacturing plants in Beijing and Dongguang, a move which will pave the way for the company to increase outsourcing of smartphones to Taiwan-based handset ODMs, according to industry sources.

    In addition to outsourcing more smartphones, Microsoft is also expected to ramp up production at its plant in Hanoi, Vietnam, optimizing the low production costs available in the country, said the sources.

    Taiwan-based Compal Electronics is likely to become the primary production partner for Windows 10-based smartphones as Compal has profound expertise for the development of Windows phones, indicated the sources.

    Other Taiwan-based ODMs, including Foxconn Electronics, Wistron and Pegatron may outpace rival companies in China in the race to gain more orders from Microsoft due to their design, R&D and production capability, the sources commented.
    Source: Digitimes