Apple, HP mobile devices changing tech supply chain

on Friday, December 21, 2012

Apple, HP mobile devices changing tech supply chain Frequent technological updates and new devices are causing changes within global supply chains, as tech leaders such as Apple and Hewlett-Packard aim to remain competitive and stay on top of the market. With new tablets and mobile technology being released on a regular basis, many companies have had to determine how to increase the popularity of their products and streamline their supply chains to keep processes running smoothly and cost efficiently.

More competition
With more consumers looking to purchase mobile gadgets, many additional companies have attempted to break into the market with new products and competitive prices. While Apple has retained a great deal of consumer loyalty and significant portion of the market share with its popular iPhone and iPad products, other firms have been attempting to overthrow the technological giant and develop their own hit products. Hewlett-Packard, Google, Microsoft and Amazon have all released devices designed to compete with Apple products at consumer-friendly price points.

Not all demand for tablets, smartphones
While tablets and smartphones have remained popular throughout 2012 and strong sales are expected to continue in 2013, companies are altering their supply chains to provide consumers with other in-demand goods as well. Many companies are working on or releasing mobile PCs featuring touchscreens and ultra-slim designs - some of the features that appeal to tablet users.

"With the changes taking place in the mobile PC segment, existing supply chain relationships could be disrupted due to competitive conflicts," noted Jeff Lin, value chain analyst at research and consulting firm NPD DisplaySearch. "For example, Samsung Display plans to improve its mobile PC customer portfolio by reducing its share in Apple and increasing support to captive brands and other external customers, like Amazon and Barnes & Noble."

The shift in production and development of new products will require many companies to revise their procurement strategies to receive the lowest costs on in-demand items necessary for the production of their merchandise. By using strategic sourcing techniques, a corporation can enjoy greater cost savings, potentially increasing its competitive edge and be better able to compete with other mobile technology companies. The number of enterprises embarking on new strategies to attract consumers with mobile devices could also change how suppliers and manufacturers provide major players with the materials and components necessary to produce their products before they hit the market.

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