Here is another big blow for businesses who are getting big bucks by partnering with Nokia. Nokia has reportedly decided that it would not use any more outside contract manufacturers for the fabrication process of its phones. According to the company, due to weak global demand on the phone market, it would stop outsourcing its production to Electronics Manufacturing Service (EMS) providers or to Original Design Manufacturers (ODMs).

Back in 2008, the Finnish mobile phone maker outsourced around 17 percent of the manufacturing volume of its mobile phone engines. The outsourcing included phones and the software that enabled its basic operations, while the companies involved were Foxconn International Holdings, BYD, Elcoteq and Jabil Circuit. Nokia’s announcement is bad news for contract manufacturing and mobile handset businesses, yet it shows that the company is able to adjust according to changing market demand.