Handset maker BYD to move into netbook production, reports say

BYD Electronics, the Hong Kong-listed OEM handset subsidiary of China-based BYD Company, plans to venture into the production of OEM netbooks, according to media reports in China.

While optimizing its own capability in the manufacture of molds and batteries, BYD may use an R&D team from China-based PC maker TCL to develop its netbook-manufacturing capability, the reports said.

The reports indicated that BYD is eventually following the development steps of its handset clients in China, many of whom have begun to develop white-box netbooks for the China market.

It may cost Taiwan notebook makers as much as 1.6 million yuan (US$231,884) to develop a mold for the production of one netbook model. However, the OEM white-box netbook makers in China are able to reduce the mold cost to as low as 300,000 yuan, according to the reports.

Some China-based notebook vendors, including Tsinghua TongFang and Haier, are now outsourcing the production of their netbooks to OEM makers – a trend which is likely to propel more China-based companies like BYD to move into the OEM netbook production, noted the media.