Business

Its high risk for semiconductor vendors to depend only on few big customers

What about the analysis of 100 companies giving a 1 million order versus one company placing 1 million order to a semiconductor device making company. Well, if you're supplying a semiconductor device to a company like Apple for use in its high volume iPhones and iPads, that gives a great boost to the branding of your product as well as sales revenue. What if Apple doesn't repeat the same order next year, you are in for a trouble, your sales revenue suddenly drop if no such other big order comes through. The latest study by Gartner clearly points out that one big order from one big customer is always riskier than multiple orders from small companies. Depending too much on one single customer is extremely riskier than depending on multiple customers. Everything is good if your single big customer able to do well and your company' revenues fly, but in case of opposite happens, than curve turns downwards same way. If you have a single or few big customers, companies don't need to spend too much money on marketing. However the wise semiconductor companies always spend more money on the marketing even during their good revenue growth period and target all type of customers. Below is the some of the very interesting finding by Gartner on the impact of revenue growth due to small buyers of chips: China is the fastest-growing small-customer market, with semiconductor reve...
You've read this far — sign in to keep reading

Sign in to keep reading.

Forgot password?
OR