Feeds

Nokia axes 4,000, shifts smartphone manufacturing East

Factories hit in cost-cutting drive

Eight steps to building an HP BladeSystem

Having reviewed operations at its manufacturing facilities in Hungary, Mexico and Finland, Nokia has decided to halt its assembly lines there. Smartphones will still be customised at the three sites, but the gear itself will be built in Asia.

The change will affect 4,000 jobs between the factories – loading custom firmware onto handsets and sticking SIMs in boxes doesn’t require as many people as assembling the devices themselves. The manufacturing work will be switched to existing Nokia facilities in Asia.

This move isn't a complete surprise: Nokia announced last September that it would be considering the future of the three facilities, and not in a good way. This is part of the ongoing cost reduction already announced by the company, but it's not just reduced labour costs which are pushing companies to the Far East.

Most of the components in a phone are made nearby, and that makes manufacturing more flexible. Nokia claims the move will enable faster innovation and better time to market, though low pay and an often-more-relaxed attitude to employment law are obviously attractive.

The downsized sites will remain open, fiddling with handsets rather than making them. That means creating operator-variants, which may be loaded with specific software such as Three's "3 Hub", or just with an operator SIM in the box or pre-slotted into the handset. The bigger the order, the greater the variation allowed, although these days Nokia will take money too.

That's small compensation for the sites, as is Nokia is making the usual noises about "supporting our personnel and their local communities during the transition". ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.