Ever wondered why it’s so easy these days for anyone to become an electronics manufacturer? Dean Takahashi and Sam Diaz of the San Jose Mercury News explain:
One factor is the rise of contract manufacturers such as Flextronics and Solectron, who can manufacture just about any electronic gadget for a low cost at the direction of any customer. Supporting the contract manufacturers are a host of other independent players such as industrial design companies Frog Design and Ideo and Santa Clara audio chip maker PortalPlayer, which made it possible for Apple Computer to quickly design its iPod music player. Using the template that PortalPlayer designs, just about anyone can design a music player. Then they can take that design to Flextronics to have it built on short notice. This has enabled companies such as Nike to slap its label on an MP3 player and sell it for the same or lower cost than consumer companies like Sony. It’s why Wal-Mart can put its name on a notebook computer or why Dell can put its name on a flat-panel TV.
