Average lifecycle of new IT products drops to only 3 months
Ninelu Tu, Taipei; Joseph Tsai, DIGITIMES [Monday 21 October 2013]

The average lifecycle of new consumer electronics products such as tablets, smartphones and notebooks, has shrunk significantly to only about three months currently, down from six months originally, according to sources from the upstream supply chain.

The shrinkage is mainly due to the frequent changes in consumer purchasing habits as the fierce competition is providing consumers more choice.

To respond to consumer changes, many vendors have already turned to giving short-term orders to their upstream suppliers instead of signing long-term contract as in the past.

Some brand vendors, which used to outsource most of their component orders to 1-2 major suppliers to save costs, are also starting to reevaluate their strategies which could impact suppliers.


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