I suppose that holds for just about any advance in technology. When something is the latest and greatest, it comes at a premium price. As competitors come in, or the company itself comes out with a more advanced version that is now the latest, the items formerly known as the greatest becomes just another gadget and comes down to average market price.
Hi Dennis--I can add a little insight into that, courtesy of iSuppli. iSuppli reports that consumers in China have been holding off on LCD TV purchases until the realization of this latest technology. I didn't see any references to pricing, but if it follows the trend line these TV sets will be more expensive initially. But I guess it's a little like holding on to your 3G cell phone and waiting for 5G to arrive...
Foxconn is also investing in LCD technology that is in high demand in China. Shipments of LED-backlit LCD-TVs in China are set to rise to 5.5 million units in 2010, up from just 406,000 in 2009, iSuppli reported in September.
Wow, that's an incredible statistic: once Chinese consumers start buying some of the technology and gadgets they currently mostly only just export... well, the mind boggles at how gigantic of a potential market there is. Of course, there are also gigantic obstacles to overcome; it's not as if the vast majority of Chinese citizens will suddenly be able to afford iPhones. Still, it'll be interesting to see what the Chinese consumer market will look like 25-30 years from now.
Foxconn is a very interesting company and I suppose it is somewhat unfortunate that they only thing most Americans associate them with is deplorable working conditions and suicide.
I'll admit I've been skeptical about the trend back toward vertical integration, even as it pertians to EMS. As for the effect on small and mid-size OEMs, I think the impact depends on what market they are in. Foxconn continues to focus on high-volume consumer electronics and as long as that is the case OEMs in medical, military aerospace and other highly-specialized markets shouldn't feel the impact. These OEMs also tend to use small to midsize EMS close to their design centers that also shouldn't feel the impact.
The wild card is whether Foxconn will keep its LCD partner "captive" to Foxconn or sell into the open market. Then the question becomes how much will OEMs and other EMS companies begin sourcing from Foxconn?
The OEMs fled vertical integration, spinning off first semiconductor operations, other "non-core" business and manufacturing, and handing some of these over to specialists--so-called contract manufacturers, that have now dwarfed their customers in size. Foxconn is one of the more successful practitioners of reverse-vertical integration to the benefit of companies like Apple. Smaller OEMs may not be benefitting from this, however. Have you looked into the implications of this vertical integration at companies like Foxconn on small to medium OEMs?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.