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.