Outsourced manufacturing has been a significant feature of the wider consumer electronics as well as handset market for many years. The logic being that little value is added by having the production process conducted exclusively in-house. Nokia had a distinctive competitive advantage in the 2000s by tightly managing its supply chain and manufacturing. However, Apple showed that outsourced manufacturing was no barrier to creating a strong market position. Now, few handset manufacturers conduct all their own manufacturing .
We are increasingly also seeing design being outsourced. The brand owner manages sales and marketing and relies on outsourced partners for design, productization, supply chain management, manufacturing, logistics and distribution, and even after-sales service.
In this report, we assess the key brand owners and their position relative to outsource versus in-house design and manufacturing. We have also profile the leading outsourcing players, who are in their own right, some of the largest manufacturers in the industry – it’s just that their names are not widely known.
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