Is There Trouble on the Horizon for Contract Manufacturers?

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rohscompliant
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Production Synthesizer
Re: Apple-Foxconn
rohscompliant   11/1/2012 9:10:11 AM
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The old 80/20 rule applies here...but in the apple/ foxconn case it is more like a 99/1 rule..............that is foxconn gets 99% of their biz from 1 client; apple........it would hurt them if apple went elsewhere.....

WaqasAltaf
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Supply Network Guru
Re: Apple-Foxconn
WaqasAltaf   10/31/2012 10:16:06 PM
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@ Bolaji True. Foxconn might be vulnerable without Apple's contract. It is the nature of this contract manufacturing industry that they have to be dependant on the decisions of their clients far more than a manufacturer is dependant on its clients.

WaqasAltaf
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Supply Network Guru
Only for Contract Manufacturers?
WaqasAltaf   10/31/2012 10:09:10 PM
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All these economic slow down factors are equally applicable on normal manufacturers therefore I don't feel that in particular contract manufacturing industry is likely to suffer. Despite that, concentration of contract manufacturing in the hands of few big players is not a positive.sign.

pocharle
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Supply Network Guru
Re: Apple-Foxconn
pocharle   10/31/2012 9:12:12 PM
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Why do you think they will experience a downturn??

_hm
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Supply Network Guru
Re: Apple-Foxconn
_hm   10/31/2012 7:12:49 PM
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Does Apple has new CM in Taiwan? Foxconn should be careful of this. Also, Apple may have downturn in near future and it will have significant affect on Foxconn.

Bolaji Ojo
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Blogger
Apple-Foxconn
Bolaji Ojo   10/31/2012 6:09:39 PM
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The Apple-Foxconn partnership has benefitted both parties immensely but one of the two parties is more dependent on the other. What is Foxconn without Apple? Another piddling EMS provider!



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