Apple Supplier Flextronics Focuses on Automakers to Reach Growth image

Flextronics International, Apple’s supplier of battery charges and cameras, looks for customers among the Korean, Japanese and Chinese automakers to expand in the automotive business.

Flextronics International plans to double its revenue from the High Reliability Solutions group every five years, according to Paul Humphries, president of the division. The company, which also manufactures entertainment and lighting systems for car makers, wants to focus more on Asian automakers as its revenue dropped for five consecutive quarters.

“We need to have a greater presence in China, supporting the Chinese manufacturers,” said Humphries. “The automotive business has been the fastest growing of the businesses within the High Reliability Solutions group.”

During the fiscal ended March 2012, the auto segment brought $1.1 billion to the company’s total revenue of $30 billion. The company has four important divisions, but only the HRS group managed to report growth during the last quarter of 2012. As China is Flextronics’ biggest market, it gets 37% of its total revenue from the region.

The China Association of Automobile Manufacturers predicts that wholesale deliveries of vehicles in China will increase 7% in 2013 to 20.65 million units, due to an increased demand for passenger vehicles.

Source: Bloomberg