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Sonim Technologies, Inc. has announced an agreement to move manufacturing of its XP3, XP5 and XP8 devices to Unicair Communication Technology Co., Ltd, the company's current printed circuit board assembly (PCBA) vendor. Unicair, a communications original design manufacturer (ODM) based in China with more than 650 employees, produces over two million devices monthly, including Qualcomm-based smartphones and IoT devices.
"This transition to Unicair integrates our manufacturing and quality processes while providing a fixed price of manufacturing for our devices rather than the variable costs and high overheads of the previous Sonim model," said Tom Wilkinson, Chief Executive Officer. "By shifting to an outsourced model, we expect to shorten our supply chain and lead time requirements, secure good pricing on final assembly of key devices and expect to eliminate more than $450,000 per quarter of lease and personnel related cost of sales, for the remaining life of our existing products."
As part of the transition, Unicair has agreed to hire a number of key management and engineering employees from Sonim's current Shenzhen operations for continuity. The transition is expected to be complete by April 2021.