Branded IT product vendors concentrating component procurement among small groups of suppliers
More and More branded IT product vendors are concentrating the purchase of key components for their products among a few suppliers in order to strengthen their competitiveness through reduced costs, according to sources at Taiwan component suppliers.
Foxlink (Chen Uei Precision Industry) and its affiliate Well Shin Technology have together snapped up over 90% of the connector orders for Apple's 3G iPhones, the sources indicated.
In contrast to the 3G iPhone, four to five connector makers were certified as qualified suppliers for the first-generation iPhone, the sources pointed out.
In addition to Apple, Asustek Computer and other ODM notebook makers are increasingly relying on a few sources for the supply of key parts and components, added the sources.
Over 80% of power cords and connectors for Asustek's Eee PCs are supplied by Taiwan-based I-Sheng Electric Wire & Cable and Alltop Technology, respectively, indicated the sources.
Asustek also purchases the bulk of keyboards for the Eee PC from the two leading suppliers, Sunrex Technology and Chicony Electronics, further squeezing the business opportunities of small-scale suppliers, the sources added.
Meanwhile, notebook makers have also been placing adapter orders mainly with the major suppliers such as Lite-On Technology and Delta Electronics, the sources revealed.
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Foxlink (Chen Uei Precision Industry) and its affiliate Well Shin Technology have together snapped up over 90% of the connector orders for Apple's 3G iPhones, the sources indicated.
In contrast to the 3G iPhone, four to five connector makers were certified as qualified suppliers for the first-generation iPhone, the sources pointed out.
In addition to Apple, Asustek Computer and other ODM notebook makers are increasingly relying on a few sources for the supply of key parts and components, added the sources.
Over 80% of power cords and connectors for Asustek's Eee PCs are supplied by Taiwan-based I-Sheng Electric Wire & Cable and Alltop Technology, respectively, indicated the sources.
Asustek also purchases the bulk of keyboards for the Eee PC from the two leading suppliers, Sunrex Technology and Chicony Electronics, further squeezing the business opportunities of small-scale suppliers, the sources added.
Meanwhile, notebook makers have also been placing adapter orders mainly with the major suppliers such as Lite-On Technology and Delta Electronics, the sources revealed.
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