Strategic Implications of the Digital Camera Joint Venture between Asia Optical and Flextronics

Abstract

The EMS provider Flextronics announced in March 2009 that it planned set up a joint venture with the digital camera manufacturer Asia Optical. The joint venture is to develop and produce digital cameras in Japan, Taiwan and China. The new joint venture will make use of Asia Optical' s lens design and optical electro-mechanical capabilities and combine these with the production and R&D capabilities of Flextronics. The new venture will offer clients ODM and OEM services. This report will analyze the background of the joint venture and relevant industry trends, and will examine key factors for the joint venture' s future development.

Table of Contents

• 1. Flextronics and Asia Optical to Cooperate
• 2. DSC Market Maturing; Growth Momentum Slowing Down
• 3. Flextronics Yet to Achieve Strong Results in DSC Sector
• 4. Cooperation Aimed at Developing Mid-range, High-end Market Segments
• 5. Vertical Integration, Increasing Lens In-house Production Ratio Important Competition Factors
• MIC Perspective
• Appendix

List of Topics

• Content of the joint venture agreement between Flextronics and Asia Optical
• Worldwide consumer digital still camera market volume forecast until 2012
• Flextronics and Asia Optical' s past digital still camera business development
• Targets of the joint venture
• Key factors in digital still camera industry competition
• Companies and organizations analyzed or mentioned in the report include:
  • Ability, Altek, Asia Optical, BenQ, Casio, Cisco, Dell, Ericsson, Flextronics, Foxconn, Funai, HP, Kinko Optical, Kodak, Kyocera, Microsoft, Motorola, Nortel, Premier, Sanyo, Sony, Sony Ericsson, Sun Micro, Xerox

List of Tables

• Table 1 Flextronics Revenue Share by Business Unit and the Company' s Key Clients
• Table 2 Major Joint Ventures and Acquisitions in the Digital Still Camera Industry since 2006

List of Figures

• Figure 1 Worldwide Consumer Digital Still Camera Market Volume, 2007 - 2012