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State of the Component Supply Chain, and EMS Exposure
May 7, 2010 |Estimated reading time: Less than a minute
— Credit Suisse analysts William Stein, CFA and Rahul Chadha provide key take-aways on electronics manufacturing services’ supply chain from the annual Global Technology Distribution Council (GTDC).
- Product refresh cycles will boost growth in servers, PCs, and printers in 2010.
- Component users are willing to pay higher prices for better allocation, indicating higher demand and more control of average selling prices (ASP).
- Several distributors and VARs cited shortening leadtimes, though they are not yet down to pre-crisis levels.
- The limited supply growth will delay any component over-supply situation for at least several more quarters.
For more information, contact the analysts at William Stein, CFA, (212) 538 6683; william.stein@credit-suisse.com and Rahul Chadha, (212) 325 7014; rahul.chadha@credit-suisse.com.
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