A few years ago, cellular phones were luxury items with a premium price. Processors with a piece of the market had a slice of heaven.
Now they're eating humble pie. There's a glut of cheap, unsold phones, and manufacturers are slashing costs. Much of the production is moving to China.
The news is wreaking havoc with some custom injection molders. Pressac plc and Nolato AB are closing plants and laying off hundreds. Triple S Plastics Inc. and Eimo Oyj have called off their planned merger, and both firms are contemplating cutbacks.
Still, the mess will have one beneficiary: contract manufacturer Flextronics International Ltd., which is taking over production from Telefon AB LM Ericsson.
When the cell-phone market does bounce back, will anyone else still be around to capitalize on the rebound?