Economics Issues

Thiago Silva Stephen Weller EC 201 Macroeconomics 03 October 2011 Reaction Paper # 1 Nokias Troubles fritter away Suppliers Articles Summary In this article, Christopher Lawton shows how Nokias economic troubles ar impacting the global come forth chain for cellphone components. He does an overall analysis in the most important points and explains wherefore Nokias problems ar ever-changing market imply and supply. Nokias economic crisis is causing echt problems in its suppliers, because most of them argon really imagineent of Nokias sales. If Nokias sales decreased, demand for cellphones components by Nokia also decreased. He gives the example of STMicroelectronics NV, a Franco Italian semiconductor company establish in Geneva. Their sales went take when Nokia announced a take in warning because of weak smartphone sales. Its wireless division had a portentous loss around 34% from a year earlier. Also, Hewlett-Packard Co. is agony problems. They announced last month the stopped in manufacturing WebOS products, and its affect some suppliers. Companies such Texas Instruments Inc. and Qualcomm Inc. leave suffer because they had supplied chips for WebOS in the past. Furthermore, Texas Instruments tangle down its sales from 34.5% to 19.2% because its dependance on Nokia.

The rise of apples IPhone and smartphones run by Google Inc.s is affecting other(a) manufacturers such as Canadas Research in interrogative Ltd. They cut 2,000 jobs and reformulated its management in July. Christopher points that Nokias crisis helps some i ndustries and detrimental others. Apple Inc! . and Samsung Electronics Co. are taking advantage of this situation amend their sales. Also, both companies designing 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 have expectation to supply big...If you indispensableness to get a full essay, revisal it on our website: OrderCustomPaper.com

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