 Last month's
article about the Xilinx-Flextronics lawsuit prompted a lot of discussion online
and over the phone. With credit to EPS readers, a few misconceptions were
corrected: although Xilinx products are programmed to customer specs, the parts
are not necessarily proprietary--they can be wiped and reprogrammed. (See: The Multiple Dangers of
Component Resale.) As such, the parts have widespread use -- and appeal --
in the open market. It also appears that the sale between Flextronics and the
end customer in this case--Checkpoint Systems Inc. --did not involve a
distribution channel: the sale was direct from the EMS to Checkpoint. To quote
my 16-year-old: "My bad." The issues around the case are unchanged, though: the
right to resell electronics components and charges of counterfeiting. Flex is
alleged to have remarked Xilinx parts to reflect a higher-cost product.
Some readers have suggested
Flex was acting like a distributor in this case by selling parts at a profit.
EMS companies can order components in such volumes that they get a preferential
price. By reselling parts at a profit, an EMS is actually
competing against distributors and possibly its own suppliers. It's unlikely
suppliers will end the preferential pricing or cut off sales, though, because
EMS companies are also their biggest customers.
The more egregious issue is of
course counterfeiting. Suppliers and distributors have been jumping through
hoops to protect customers like Flextronics from counterfeit components. The
channel has invested in processes, equipment and technology to thwart
counterfeiting. They have pointed fingers at one another as the "cause" of the
problem. The idea of an OEM or EMS being directly involved in counterfeiting is
almost unthinkable. As nothing has been proven yet, I'll hold off on the
implications: We'll know more as the case unwinds.
The channel seems to be
looking forward to 2014. Distributors expect demand to pick up, and there's
evidence that it will. (See Distribution Bullish on
2013.) U.S.-based manufacturers are predicting revenue growth the first half
of 2014 and even better performance in the second half. If prices remain stable,
supply is steady and demand doesn't take a precipitous dip, it should be a good
year. My colleague Bolaji Ojo -- as always -- adds some high-level perspective
to the economic outlook in The Perils of a Low-Growth
Economy. And our thrid colleague, Gina Roos, take a look at how the Internet
of Things (IoT) will impact the electronics supply chain in Suppliers Eye IoT.
We at EPS wish all a happy,
healthy and profitable New Year. And let us know what you think about the
market, our coverage or the big issues of 2014 at editors@epsnewsonline.com.
Barbara Jorgensen
|
 |
 |
|
Sign Up for the Free Email
Newsletter |
Xilinx
Inc. (NASDAQ: XLNX) is hot with investors and the analyst community.
Link
As the year winds down, it's inevitable that we reflect on the
past year. Here is Electronics Purchasing Strategies' top 10 most read, most
clicked stories for the year. Link
Top 10 Products of
2013
The top 10 most read new product introductions in 2013
ranged from sensors and ferrite beads to op amps and 32-bit microcontrollers.
Four of the top ten devices were IP&E components from three suppliers:
Bourns, Murata, and Molex. Link
The high-tech industry didn't get to become the
economic leader it is today by oozing fear. Its pioneers took huge risks.
Link |
|
Sign Up for the Free Email
Newsletter |
Mil/Aero
Industry to Grow 5% in 20134
Although
overall revenue growth in the aerospace and defense (A&D) industry is
projected to grow five percent in 2014, global revenues for defense companies is
on a downward trend, falling 1.3 percent in 2012 and 1.9 percent in 2011,
according to Deloitte Touche Tohmatsu Limited (DTTL). Link |
Jabil
to Sell Aftermarket Unit for $725M
Jabil
Circuit Inc. (NYSE: JBL) has announced plans to sell its aftermarket support
business to iQor Holdings Inc. for $725 million as the
electronics manufacturing services provider intensifies its multiyear
reorganization and cost-reduction programs.Link |
Resilinc, a
provider of supply chain resiliency solutions, and KPMG LLP,
the U.S. audit, tax and advisory firm, have formed an alliance to help clients
change their approach to supply chain risk management. Link |
The semiconductor and
electronics original equipment manufacturing (OEM) industries are set to enjoy
significant revenue growth in 2013-partly due to their tight management of
inventory levels-according to a Supply Chain Inventory market brief from IHS Inc. Link |
|
Sign Up for the Free Email
Newsletter |
|
| |
|
Copyright © 2013. All Rights
Reserved.
|
| | |
