NEWS - Friday, February 8, 2002


Asian Xbox Repair Contract

Solectron says wins Xbox Asian repair contract

Contract manufacturer Solectron Corp. said on Wednesday it has won the contract to provide repair services for Microsoft Corp.'s Xbox video game console in Asia.

Speaking at the Goldman Sachs Technology Investment Symposium in La Quinta, California, Solectron Chief Financial Officer Kiran Patel said, "We've now won the contract to repair the Xbox in Asia."

The Xbox is scheduled to launch in Japan on Feb. 22.

In October, Milpitas, California-based Solectron won the contract to provide repair services in North America for the Xbox, which went on sale in North America on Nov. 15.

Solectron's North American contract included quality control services, though it was not immediately clear if the Asian contract includes the same provision. Patel did not elaborate and a company spokesman was not immediately available for comment.

A Microsoft spokeswoman said she was not aware of the deal and could not immediately comment on its details.

While the initial shipments of the Xbox for Asia will be built by contract manufacturer Flextronics International Ltd. which makes the North American and European units, Microsoft has said it is looking for a local partner to take over building the units for the Asian market.

Analysts have estimated the value of the Xbox contract to Flextronics at over $1 billion a year, and Flextronics has said it would still have about 80 percent of the Xbox manufacture business if Microsoft chooses an Asian partner.

The Xbox is due to be launched in Europe in March.
Source: http://www.yahoo.com/

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