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 impressing 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 sincere problems in its suppliers, because most of them ar really seement 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 utility warning because of weak smartphone sales. Its wireless division had a authoritative loss around 34% from a year earlier. Also, Hewlett-Packard Co. i s distraint 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 matte 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 some other manufacturers such as Canadas Research in doing Ltd. They cut 2,000 jobs and reformulated its management in July. Christopher points that Nokias crisis helps some in dustries and prejudicious 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 opportunity to supply big...If you indispensableness to get a full essay, orderliness it on our website: OrderCustomPaper.com

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