Will shifting designs from ODMs to OEMs improve PC industry competitiveness ?

An article in the Wall Street Journal (November 16,2012) describes slumping PC demand and a decision by OEMs such as HP and Acer to assume control of their product design details. In the past, ODMs (Original Design manufacturers) such as Wriston and Quanta, completed all design details in Taiwan in response to design direction by OEMs. But the ODMs are now observing slumping sales as design decisions get made by OEMs in response to the success of Apple and Lenovo. Will this shift in design enable more product differentiation and thus higher margins for OEMs ? Is the impact of past practices of use of ODMs for design a proliferation of me-too similar designs that destroyed OEM competitiveness ? Will a shift to electronics recycling or designs for tablets enable ODMs to remain competitive ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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