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 claiming the global show up chain for cellphone components. He does an overall analysis in the most important points and explains wherefore Nokias problems ar changing market imply and supply. Nokias economic crisis is causing satisfying problems in its suppliers, because most of them atomic number 18 really forecastent 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 ground in Geneva. Their sales went take when Nokia announced a kale warning because of weak smartphone sales. Its wireless division had a meaningful loss around 34% from a year earlier. Also, Hewlett-Packard C o. is paltry 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 orchard apple trees IPhone and smartphones run by Google Inc.s is affecting new(prenominal) manufacturers such as Canadas Research in performance Ltd. They cut 2,000 jobs and reformulated its management in July. Christopher points that No kias crisis helps some industries and negat! ively charged others. Apple Inc. and Samsung Electronics Co. are taking advantage of this situation up(a) 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 contingency to supply big...If you indispensableness to get a full essay, beau monde it on our website: OrderCustomPaper.com

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