Terrapin,
I recently was reading an article on the growth of mobile phones. It stated that the highest growth on a percentage basis would be in Southeast Asia, mainly China, due to the lack of, poor quality, or outdated landlines systems. I suspect Deswell's customer will manufacturer for export, but is looking at the regional opportunities long term.
I thought it a strange thing to put in the PR, but Mr. Lau states "we believe our productions cost is only about 40% of our competitors". That's a major advantage, more than enough to justify shipping costs into other markets.
I doubt that anyone has an advantage on quality. Deswell is operating with the most modern, 'state of the art' mold design software, mold making machines, and presses.
I didn't realize the mobile phones were that difficult to make. I suppose it's because there's so much technology put into such a small package that has to be very durable.
FWIW,
Ron
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