There's Death in Those
Counterfeiting is a big subject
in the electronics industry today and for many it is more than a business issue.
It is very personal. Companies that are victims of counterfeiters don't like to
tell anyone their products or supply chains have been compromised; it can be the
kiss of death for an entire product line, including parts that had not been
duplicated and sold by counterfeiters. The dangers extend well beyond damages to
corporate reputation and bruised executive egos, though.
threaten not just supply chains but human lives too and this fact should be a
concern to everyone in the electronics industry as I noted in a recent blog from
which I took the title of this newsletter (See: There's Death in Those Counterfeits). Editors and
contributors will continue to address this topic in articles and blogs because
it is critical to the industry and the larger economy, not to mention people
impacted. (Also see: Military, Aviation Markets More Vulnerable to
the last EPS News+Plus newsletter went out we have continued to cover
developments that are important to electronics component procurement experts,
the supply chain, financial experts, senior management and other industry
professionals. A financial analysis article by London-based Colin Barnden of
Semicast Research caught the eyes of EPS executive editor Gina Roos and we
quickly got permission from the financial analyst to publish it on our site.
Barnden gracefully agreed and the article should be a compelling read for anyone
trying to understand the dynamics of the competition between intellectual
property (IP) company ARM Holding and Intel Corp., the world's biggest
semiconductor vendor by revenue. It's doubtful anyone can accurately predict how
the war between the two competing ideas championed by these two companies will
play out but as the skirmishes moves on to the "Internet of Things" Barnden
provides some valuable insights into what the industry can expect. (See: Intel vs. ARM War Moves to 'Internet of
the distribution front, we continue to watch the jostling for stronger market
positions by the big companies and their smaller rivals. Being small doesn't
mean you can rumble with the big guys as Jameco Electronics has shown in a
report filed by managing editor Barbara Jorgensen, a long-term watcher of the
market. Jameco, according to Barbara, is determined not to be left behind in the
industry and has crafted a niche in the market that it is trying to address with
specialized offerings. (See: Jameco: a Different Approach to
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Intel vs. ARM War Moves to 'Internet of Things'
September saw the launch of the
Z3700 series of Atom processors from Intel Corp., the supplier's latest assault
on the smartphone and tablet processor market. While its market share in
applications processors remains small today, Intel continues to aggressively
mount a challenge and has firmly parked its tanks on. Continue Reading . . .
What RoHS 2 Means for Buyers and the
Now that the EU's Restriction on
Hazardous Substances (RoHS) has been around awhile, manufacturers have a pretty
good idea what's necessary to comply with the directive. Now RoHS 2 is on the
horizon, and the role channel partners play in environmental compliance efforts
will be expanded. Continue Reading . .
The global aviation and
military markets have become even more vulnerable to counterfeiting challenges
today as companies channel higher portions of their product development
resources to the consumer electronics segment, leaving lower volume sectors to
utilize unsafe channels for filling urgent and difficult component procurement
needs, industry sources said. Continue Reading . ..
Component Picks in October
month's selection of hot product picks focuses on technology advances for
high-reliability applications, ranging from medical devices to industrial
equipment. The unifying factor here is their high performance specs. It's also a
nice mix of product types, including an op amp, motor driver, MCU, cable, rocker
switch, oscillators, data converter, and mixed-signal control processor.
Continue Reading . .
Any electronics distribution company that is still conducting business in
2013 has something unique to offer its customers. Following the industry's
massive consolidation during the 1990s were several market downturns that
severely challenged the channel and forced many companies to consider their
strengths and weaknesses. Now in its 38th year of business, Jameco Electronics
has decided its strength lies in being
"different." Continue Reading . .
Delph: Avnet aims to be even
Bigger in IP&E
Avnet Inc. prides itself on being a broadline distributor that's able to
supply all the components needed by its thousands of customers globally. That
hasn't stopped the company from trying in recent years to stamp its imprint on
the interconnects, passives and electromechanical (IP&E) market, a segment
where it has an understated position despite being one of the top distributors.
Continue Reading . .
Intel Foundry: Leveraging Process
Edge for Profit
endorsement couldn't be any sweeter. Intel Corp. is at least five years and
"probably" more ahead of the competition in process technology, says John Daane,
chairman, president & CEO of FPGA vendor Altera Corp. That's why Altera will
be sourcing semiconductor wafers from Intel starting in 2014, shifting wafer
sourcing for high-end products from long-term foundry partner Taiwan
Semiconductor Manufacturing Co. Ltd., to secure a technology edge against key
rival Xilinx Inc. Continue Reading . .
Plexus Hits the Refresh
not often that a CEO admits his company's sales strategy needs a complete
overhaul because it has "stalled" but that was the blunt message Dean Foate had
for Plexus Corp. shareholders recently. Foate, president, chairman and CEO of
the electronics manufacturing services (EMS) provider, then launched into a
detailed outline of how he expects to revive the company and spark growth again
at an enterprise that once was the world's biggest EMS company. Continue Reading . . .
Who's in the iPhone
tear-down analysis for the latest iPhone 5s is in and it shows a list of
components suppliers who successfully got their products designed into the new
handset from Apple Inc. Toshiba, Samsung, Qualcomm, Elpida and
Murata were the top component suppliers for the iPhone 5s in dollar value,
according to IHS Inc., which estimated the total bill of materials for the
device at $191. Add in the $8 manufacturing cost and the total production cost
for the device rises to $199 versus $197 for the previous version of the
product, IHS said. Continue Reading . . .
Consolidation: Scourge of IP&E Market
are numerous challenges ahead for interconnects, passives and electromechanical
(IPE) components manufacturers, component distributors and equipment makers.
Commoditization - the rapid erosion of pricing and profit margins - isn't a
problem for just suppliers. It poses a challenge for distributors and, in the
longer run, OEMs too; what they gain in lower pricing for commodity components
is promptly in higher prices for proprietary parts. Continue Reading . . .
With every new technology comes the opportunity for supply chain partners
to tap into new customers or markets. Market research firm Gartner has
identified the top technology trends it deems strategic for most organizations
in 2014. Continue Reading . . .
has been tough times in the PC market over the past several years with teh PC
shipment volumes contracting since early 2012 and pulling down shipments of most
PC vendors. Nevertheless, a few local heroes are finding ways to grow their
business despite the challenging conditions and sometimes volatile monthly
trends. Continue Reading . . .
and counterfeiters can kill and may already be responsible for the loss of
countless human lives worldwide. So far, though, the human toll of the damaging
impact of counterfeiting has been lost in the din of words over how fake
products are hurting the electronics industry supply chain and damaging the
reputation of companies involved. That's where we all need to refocus the
attention of all stakeholders because a lot more than just money is at stake;
lives are being needlessly lost. Continue Reading . . .
Corp. said it has signed an agreement to provide contract manufacturing services
to communications equipment vendor SpiderCloud Wireless in North America,
helping to boost sales at the EMS provider. Continue Reading . . .
LED Pricing Continues to
Fall in Double Digits
for mid- and high-power LEDs continue to fall in the 10 to 15 percent range,
according to LED suppliers. Pricing for mid-power LEDs has been falling at a
faster clip, around 20 percent, primarily due to an oversupply in the market
over the past few years. Contributing to the price declines for mid-power is
weakening demand from TV manufacturers and a large number of competitors.
Continue Reading . .
LCD Milestone Isn't Good
News for Suppliers
fourth quarter of the year could be a buyer's market for any company in need of
TV-sized liquid crystal displays (LCDs). For the first time ever, reports market
research firm IHS, the global market for LCD TV panels declined in Q3 from the
prior quarter. Continue Reading . .
The Lure and Deception of
secrecy is rampant in the electronics industry, governed by a strict regimen
where suppliers are forbidden to disclose how much particular customers paid for
their products and OEM and EMS provider procurement and purchasing experts
consider pricing a "competitive weapon." Continue Reading . .
Benchmark Acquires EMS
Division of CTS
Electronics Inc. said it has bought the electronics manufacturing services unit
of CTS Corp., paying approximately $75 million for the division. The business
services the industrial, aerospace & defense, medical and communications
market, according to a statement issued by Benchmark and CTS. Continue Reading . .
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