Design Con 2015
Breaking News
Comments
junko.yoshida
User Rank
Blogger
re: EMS industry at the crossroads?
junko.yoshida   7/19/2012 6:09:10 PM
NO RATINGS
This is really a good article. I do, however, have a question. The author notes that the trajectory of the consumer market will be ultimately a shift back to the OEM/ODM model. I don't quite get that. Every consumer electronics manufacturer I know has already left the manufacturing business -- mostly. Sony, Panasonic, JVC included. So, how will those CE vendors come back and tell the EMS guys, "We will take it from here"? But if the issue the author raises is about the EMS going up the value chain, I see that it's already happening. Look no further than the deal Foxconn made with Sharp.

Sr. Cota
User Rank
Rookie
re: EMS industry at the crossroads?
Sr. Cota   10/24/2012 6:48:05 PM
NO RATINGS
Hello Junko, Sony has not left manufacturing business, it has its own manufacturing facilities as well as it is using EMS companies. In general, amount of outsourced LCD TVs, for all OEMs, is about 30%-35%, rest is in-house manufacturing.

DrQuine
User Rank
CEO
re: EMS industry at the crossroads?
DrQuine   7/20/2012 2:18:59 AM
NO RATINGS
One explanation for the low margins received by manufacturers is that they enjoy very high multipliers (high volume sales) with very low investments in R&D. If a vendor gets greedy and asks for high margins, the manufacturing business will go to the next manufacturer on the list. As household names in electronics keep going out of business, the relative security of high volume manufacturing becomes increasingly appealing as a business model for high quality nimble companies.

junko.yoshida
User Rank
Blogger
re: EMS industry at the crossroads?
junko.yoshida   7/20/2012 6:12:09 PM
NO RATINGS
Ah, that does make sense. Thanks, DrQuine.



Flash Poll
Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Max Maxfield

Where Are the Ceramic Vacuum Tube Holders of Yesteryear?
Max Maxfield
48 comments
I'm currently cursing myself for being a fool. I have let chances and opportunities slip between my fingers. I deserve to be berated soundly. But what is the cause of this gnashing of ...

Jolt Judges and Andrew Binstock

Jolt Awards: The Best Books
Jolt Judges and Andrew Binstock
1 Comment
As we do every year, Dr. Dobb's recognizes the best books of the last 12 months via the Jolt Awards -- our cycle of product awards given out every two months in each of six categories. No ...

Engineering Investigations

Air Conditioner Falls From Window, Still Works
Engineering Investigations
2 comments
It's autumn in New England. The leaves are turning to red, orange, and gold, my roses are in their second bloom, and it's time to remove the air conditioner from the window. On September ...

David Blaza

The Other Tesla
David Blaza
5 comments
I find myself going to Kickstarter and Indiegogo on a regular basis these days because they have become real innovation marketplaces. As far as I'm concerned, this is where a lot of cool ...