REGISTER | LOGIN
Breaking News
Comments
Oldest First | Newest First | Threaded View
junko.yoshida
User Rank
Author
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.

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

Sr. Cota
User Rank
Author
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.



Like Us on Facebook
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Martin Rowe

Test Tool Finds Ethernet Wiring Errors
Martin Rowe
Post a comment
When my house was renovated several years ago, I had the electrician install network outlets in numerous places, then run the LAN cables to a wiring closet. But he didn't document the ends ...

Martin Rowe

Local Electronics Store Supplies Engineers and Hobbyists
Martin Rowe
5 comments
Rochester, N.Y. — Tucked away in this western New York city known for its optics is Goldcrest Electronics, a local store that's supplied businesses and individuals with electronic ...

Martin Rowe

How to Transform a Technology University (Book Review)
Martin Rowe
1 Comment
The Presiding Genius of the Place by Alison Chisolm. WPI, Worcester, Mass., 234 pp., 2016. Engineers love to discuss, and often criticize, engineering education. They often claim ...

Max Maxfield

Aloha from EEWeb
Max Maxfield
Post a comment
Just a few minutes ago as I pen these words, I posted this blog about this month's Cartoon Punchline Competition over on EEWeb.com.