Electronics Production | March 24, 2009
EMS has to deal with market share contraction
The contract electronics manufacturing markets ended 2008 in a challenging situation. For the first time, since 2002, the top EMS providers experienced a market share contraction.
Even the largest electronics manufacturing service provider, Foxconn, saw its multi-year rally fade as sales only marginally increased 1.3% during 2008. Other contract electronics manufacturers, including Flextronics, Celestica, Sanmina and Elcoteq experienced revenue contractions of -1%, -5%, -32% and -13%, respectively. Due to the global recession and financial crisis, electronics contract manufacturers, including ODMs, find themselves with new challenges in 2009. OEM bankruptcies (Nortel), OEM consolidation (IBM and Sun Microsystems), fading demand, overcapacity, predatory pricing, and other problems are bound to impact future results of the slowing contract manufacturing market in electronics. iSuppli, and here their principle analyst Adam Pick, has created a series of reports and analysis specific to this volatile, contract electronics manufacturing market.