Key Metrics and Supply Alert
Staff -- Purchasing, 10/21/2004 2:00:00 AM
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Now may be a time to source some electronics manufacturing services: EMS sales are falling short of expectations because of order reductions from large communications and information technology customers. Thomas Hopkins analyst at Bear Stearns says weaker-than-expected sales are affecting equally Celestica, Flextronics, Sanmina-SCI, Solectron, Jabil Circuit and Benchmark Electronics. "Slower end demand isn't something most EMS companies can effectively combat in the near term," adds J.P. Morgan Securities' analyst Thomas Dinges.
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The mobile-phone market is becoming an increasingly competitive battleground for flash-memory suppliers. This could be good for buyers since the intense fight for market share among NOR-type flash makers is expanding to include NAND-type flash. iSuppli predicts the flash-memory market, particularly the NOR segment, is set to have a robust 2004: NOR flash memory sales, including revenue from multichip packages, will rise to $10.3 billion in 2004, up 39% from $7.4 billion in 2003.
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Why are airline travelers getting coats checked now? Because neither the walk-through metal detectors that passengers use on the way to gates nor the X-ray machines for carryon bags can detect plastic explosives. Bags checked onto planes in the U.S. must pass through machines that can detect various kinds of explosives. But, Homeland Security officials got a wakeup call about the need to screen airline passengers for explosives when two Chechen women carried bombs onto two Russian planes and blew them up.
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American chief executives plan to increase information technology spending during the next three years, according to a study by Accenture, even though their business managers say IT currently is underdelivering. Eighty-four percent of the CEOs say productivity has increased during the past several years and most attribute the productivity gains to IT-related factors. However, more surprising is the Accenture finding that, in spite of it, nearly half (47%) of business managers and more than half (51%) of IT executives can't quantify the perceived value of IT. Most CEOs say their companies have yet to make their technology organizations accountable for delivering real business value.
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When Hewlett-Packard recently missed its third-quarter earnings expectations by 39%, it blamed the unit that sells gear to corporate customers. Now, the company is quietly trying to bring in some new managers, including a senior operations executive, to help CEO Carly Fiorina fix the business. According to sources, HP is looking for a seasoned exec to run day-to-day operations across its units that sell enterprise hardware and software, services, and personal computers to corporations.
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