Amazon Plays Hardball with Electronics Distributors

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juancampos   5/15/2017 6:22:41 PM

Very interesting discussion here. While I do agree that this could lead to the downfall of major players in the electronics industry, as a business owner in both the logistics and construction industries, I've seen how the opposite could also be true as well, especially with ever-changing demographics. I suppose only time will tell... 

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prooks   4/22/2017 7:25:43 AM

Though i agree with your comments that there is severe risk for Arrow, Avnet and Future's commodity business, customers who end up using Amazon for purchasing are taking significant risk when procuring non-authorized product.  Counterfeit product is rampant in the electronics industry and trying to save money by using a non-franchised methodology can be penny wise and pound foolish.  Components that cost from a nickel to a couple of hundred dollars that end up not working on a board or system can cause thousands of dollars of cost to a manufacturer, not to mention the cost of perceived quality.  Further, even though there are literally tens to hundreds of low cost suppliers trying to supplant established semiconductor companies, quality of product will always play a significant role in a decision to use a supplier.  It's easy to generalize that low cost solutions will envelope an industry and technology if there isn't value add, but in an industry where technological deficiency will destroy an end customer, there is no room for acceptable low cost/quality offerings.

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