Tuesday, July 13, 2010

Do You Know Who Really Makes Your Mobile PC?

Today most mobile PCs--from Dell to HP--use an original design manufacturer (ODM) like Quanta or Compal to produce their goods, but increasingly the big players lare switching to electronic manufacturing services (EMS) companies like Foxconn and Flextronics which go beyond ODMs with R&D, testing, distribution and even return/repair services for original equipment manufacturers (OEMs) like ike Apple and Sony. Look for an increasing migration to EMS for mobile electronics makers over the next few years. R.C.J.

Here's what iSuppli says about the trend to EMS: Electronic Manufacturing Services (EMS) providers are set to make inroads into the dominant position of Original Design Manufacturers (ODMs) in the mobile PC market, with the EMS share of shipments projected to more than double from 2009 to 2014, according to iSuppli Corp. While ODMs are expected to continue accounting for the vast majority of mobile PC shipments in the coming years, EMS companies will experience a rapid rise in volume, with their share of worldwide shipments rising to 8.6 percent, up from a mere 3.4 percent in 2009. Meanwhile the share of shipments from ODMs will decline slightly to 84.6 percent in 2014, down from 86.2 percent in 2009. ODMs will limit their share declines by continuing to take over from the in-house manufacturing operations of brands...
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