IDC lays out 2008 mobile phone and PC, x86 server supply chain predictions

Two of the biggest segments of the electronics supply chain are expected to get even bigger this year, according to IDC’s OEM value chain research team.

IDC today presented its top 10 2008 predictions for the mobile phone and the PC and x86 server supply chains, two major supply chains in the IT and telecommunications industry.

According to the firm, in 2007, the PC supply chain shipped 257 million systems worldwide and the mobile phone supply chain manufactured 1.1 billion finished phones. Combined, these two supply chains saw shipments valued at $318 billion in 2007, more than a third of the global customer spending on information and communications technology hardware, IDC reported. In 2008, IDC predicted the PC and the mobile phone supply chains will increase shipments by 10% worldwide.

"While mobile phone components and manufacturing costs continue to fall, relationships within the supply chain are evolving as key players gain market share in their respective segments and reconfigure offerings to capture more value in the transformation process of component parts to assembled systems," said Michael Palma, senior analyst for IDC’s OEM value chain research.

IDC’s predictions present that media processing chips and their underlying technologies will be increasingly important in mobile phone design and differentiation; vendors that are able to offer integrated semiconductor platform solutions will have an “increasingly sustainable advantage” in the supply chain; and that there will be further consolidation in mobile phone chip vendors, mobile phone designers, and manufacturers

On the PC and x86 server supply chain end, IDC noted changes that could impact the value chain’s structure, including moves by manufacturers that will see them look to move beyond China. IDC also said that managing inventory levels and sourcing agreements will become critical for purchasing departments throughout the supply chain as the industry manages downside risks, and that inexpensive PCs will not be a major driver in 2008 for the PC ecosystem.

The IDC studies “Worldwide Mobile Phone Supply Chain 2008 Top 10 Predictions” (Doc #210765) and “Worldwide PC and x86 Server Supply Chain 2008 Top 10 Predictions” (Doc #210766) can be purchased through the firm’s Web site.