Companies should sell there good for more than they spend to produce them, but what happens if this isn't the case? The pressure from the market to have always lower prices at any cost have now become the new normal. Endless, sequential cost-downs for electronic manufacturing services are virtually every OEM’s strategy for preserving next quarter’s margin if not actual profits. Suppliers of everything from raw-materials to components to major sub-assemblies are pushing-back on both the EMS and ODM community with the result being that entire end-market sectors are being abandoned or sold off by the OEMs as they can no longer squeeze out a profit by squeezing their suppliers.
Companies have to be careful, outsourcing is not a strategy but just a tool!
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Stealth Components is an independent distributor of standard long-lead-time, allocated, hard-to-find, and obsolete electronic components. We help eliminate gaps, reduce costs and avoid production line delays and interruptions for our global customers.