Acting chief executive Bill Jessup of Psion said the deal represents progress in executing its plans for significantly lowering product costs while maintaining quality. He said Psion would also benefit from the improved purchasing power and manufacturing operations that Flextronics could provide.
Jessop said there continues to be good demand and orders for Psion’s rugged wireless mobile products, but it remains a very competitive market. This move will contribute towards sustainable margin improvement, he said.
While Psion would not expand on why the Flextronics deal is restricted to one device, it is probably a test to see if the company can follow the widespread trend in the industry to outsource manufacturing.
Final assembly of the 7535, a CE.NET-based device intended for mobile data collection in a range of working environments, would continue at the company’s existing facilities in Canada.
