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Motorola, Flextronics alter deal

The sagging demand for wireless handsets is forcing Motorola to alter some terms of a deal it made with contract manafacturer Flextronics International, Motorola announced Monday. Under terms of the deal reached in May, Flextronics, an outsourced manufacturing company, was expecting to make about $30 billion in Motorola products, including parts for phones and two-way pagers. The deal included incentives if Flextronics met Motorola's demands. Those incentives were removed under new terms of the deal. Motorola said in a statement that the slowdown in cellular phone sales made it impossible to reach the volume of goods Flextronics was asked to make.

Ben Charny Staff Writer, CNET News.com
Ben Charny
covers Net telephony and the cellular industry.
Ben Charny
The sagging demand for wireless handsets is forcing Motorola to alter some terms of a deal it made with contract manafacturer Flextronics International, Motorola announced Monday. Under terms of the deal reached in May, Flextronics, an outsourced manufacturing company, was expecting to make about $30 billion in Motorola products, including parts for phones and two-way pagers.

The deal included incentives if Flextronics met Motorola's demands. Those incentives were removed under new terms of the deal. Motorola said in a statement that the slowdown in cellular phone sales made it impossible to reach the volume of goods Flextronics was asked to make.