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Handset Outsourcing as a Competitive Imperative
Outsourcing is no longer an option that mobile handset OEMs can choose to ignore. The commoditization of the mobile handset industry is reshaping market dynamics on a global scale as major OEMs struggle to keep pace with consumers whose rate of demand for product replacement is growing higher and higher.
Outsourcing has been a successful way to cope with constantly shorter product lifecycles and declining product prices. What used to be a simple straight-forward outsourcing relationship has become increasingly complex as the industry matures and grows. Different outsourcing business models have emerged for OEMs to cope with continuous advances in technology and rapid changes in consumer market realities. A more structural relationship has evolved between the OEM and outsourcing partners.
Choosing which of these business models to use depends heavily on the relationship between the OEMs and their outsourcing partner. This structural relationship approach focuses on process alignment, co-evolution, and mutual long-term commitment. Cost reduction is not an outsourcing strategy; it’s a result.
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Topics:
Communication Technology, Contract manufacturing, ems, Manufacturing services, Outsourcing, World Mobile Congress; Outsourcing; Contract manufactur
