Flextronics ponders the future of notebooks

Giant supply company Flextronics is considering backing out of manufacturing notebooks, according to a report.

According to Digitimes, Flextronics now thinks making notebooks is not worth the candle, with margins dropping from a piffling three percent to a truly  frightful 1.5 percent.

The wire, quoting unnamed sources, reports that Flextronics hoped it could make a killing by making millions of notebooks a month, but it hasn’t received the orders it anticipated.

If the reports are true, Taiwanese ODMs (original design manufacturers) such as Wistron and Compal will make hay while the sun shines. And, of course, then there is Hon Hai (Foxconn), which no doubt will also benefit from the move if Flextronics truly has had enough pain.

ODMs make machines that then get logos put on them from the likes of Dell, Hewlett Packard and the rest.