The news is always on units sold and revenues posted. What happens behind the scenes, however, when returned products become a major issue?
The news is always on units sold and revenues posted. What happens behind the scenes, however, when returned products become a major issue? Accenture, conducting a research and analysis project, just found out.
The company uncovered three huge problems that increasingly challenge the wireless industry:
- An alarming number of cell phones and networking equipment in good working order are returned seemingly based upon the complexity of the products.
- A resulting issue is the tremendous current cost and burgeoning future cost of these returns to the industry. In 2007, the research found that consumer electronics will spend $13.8 billion on product returns just in the U.S., with high-end cell phones (smartphones) and Wi-Fi-enabled wireless networking equipment topping the list.
- Embedded software, widely used in stand-alone wireless devices also represents severe challenges with the top three being the quality of software testing, the lack of collaboration within the industry, and a typical complaint--the late delivery of embedded software products and services.
So, why isn't anyone talking about this? If complexity is driving returns, are we headed down the right path? Maybe since Accenture is becoming verbal, others will follow. What's your take on this? How much of a financial impact is it having on individual companies and the industry in general? Please send comments to me at firstname.lastname@example.org and we'll get a discussion going.