Monday, December 01, 2008
Strategic Sourcing News
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Nokia calls on Taiwan in cost cutting drive
Nokia is to increase its sourcing levels from Taiwan as it looks to cut component costs.
The Norwegian-based technology giant has announced plans to buy approximately 200 million display panel sets from Taiwanese suppliers in 2008, a figure that's expected to rise to 300 million the following year.
The move will see Taiwanese suppliers fulfil 40 per cent of the company’s requirements in the 12 months from January.
Some analysts have forecast that Nokia’s increased outsourcing levels in Taiwan could prompt competitors such as Samsung to follow suit.
A number of Taiwanese display-panel makers have claimed that the company’s current outsourcing plans is spiking prices of various commodities – increasing production costs for various industries, and forcing Japanese component suppliers out of the market.
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