The OEM industry go out continue the growing path. The OEM industry is pass judgment to grow from $613 billion in 1999 to $1.1 trillion in 2004, an yearbook growth rate of 9.1%. Outsourcing is not generalized for all OEMs. japan is a largest OEM to assemble PCB in house like Hitachi, Sony and others. In US HP was the largest outsourcer of PCB aggregation with IBM aggressive outsourcing company. Many firms will continue to successfully manufacture all of their product line, alone this will succeed as a strategy further in certain situations. For example, it appears that for many high-volume consumer electronics products (Television, VCRs, camcorders) that maintain a come up of electromechanical parts and absolutely low end-user costs, vertical integration may prevail as the most cost-effective model.
All the gifted property is now moving onto silicon. You can cod a cell phone on a chip. You can make a router on a chip. Every product is on a trajectory of becoming silicon surrounded by plastic. As this move occurs, much than design is no perennial a competitive advantage. Design can begin to be a commodity. So brand companies might as thoroughly buy the designs for their products off the shelf. Companies like Flextronic are developing a capability to design and make products cheaper than anyone.
The medical instrumentation is the invigorated industry to fast pace outsources the assembly of PCBs. Many saucily medical instrumentation use a lot of CEM, although the more established companies prefer to perform the entire product assembly in-house. The Computer Industry is by far the leading OEM worldwide, result by Communications, Consumer, and Commercial. With the expansion of silicon on all products more quickly the EMS model developed by Flextronics will reach out to other markets.
One of the first non electronic market to move to EMS is the...
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