Economics Issues

Thiago Silva Stephen Weller EC 201 Macro sparings 03 October 2011 Reaction musical composition # 1 Nokias Troubles shoot away Suppliers Articles Summary In this article, Christopher Lawton shows how Nokias economic troubles ar affecting the orbiculate emerge chain for cellphone components. He does an overall compendium in the most historic points and explains wherefore Nokias problems ar changing market predicate and supply. Nokias economic crisis is causing real problems in its suppliers, because most of them be really underage of Nokias gross gross sales. If Nokias sales decreased, demand for cellphones components by Nokia in any case decreased. He gives the example of STMicroelectronics NV, a Franco Italian semiconductor caller-out based in Geneva. Their sales went take when Nokia announced a profit warning because of light smartphone sales. Its wireless division had a significant loss nigh 34% from a socio-economic class earlier. Also, Hewlett-Packard Co. is suffering problems. They announced refinement month the stopped in manufacturing WebOS products, and its affect well-nigh suppliers. Companies such Texas Instruments Inc. and Qualcomm Inc. leave suffer because they had supplied chips for WebOS in the past. Furthermore, Texas Instruments felt down its sales from 34.5% to 19.2% because its dependance on Nokia.

The recrudesce of Apples IPhone and smartphones dismissal by Google Inc.s is affecting other manufacturers such as Canadas Research in Motion Ltd. They cut 2,000 jobs and reformulated its concern in July. Christopher points that Nokias crisis helps some industries and damaging others. Apple Inc. and Samsung Electronics Co. are taking advantage of this stance improving their sales. Also, both companies excogitation and manufacturing chips for their devices on their own. They dont depend of secondarys manufactories to supply their products. These secondarys suppliers are facing problems because their Nokias dependence. much(prenominal) these suppliers dont check chance to supply big...If you destiny to get a dependable essay, order it on our website: Orderessay

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