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And much of the equipment being used to light additional existing fibers has been coming out of inventories, forcing components vendors like JDS Uniphase and Nortel to lay off thousands of production workers.
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"But we're on the verge of a new personal computer cycle with Windows 2000, along with accelerating growth in telecommunications, capacity constraints among semiconductor and other component vendors and strong demand in the Asian markets".
And the component vendors sell to systems vendors.
They restricted their purchases from component vendors to passive parts, such as antennas.
Dozens of component vendors fight each other to the death to win designs at smartphone OEMs.
This competitive dynamic forms an entirely different basis for how component vendors approach system integration and support.
Component vendors must be selected for both quality and price and any potential changes passed through a detailed selection procedure.
Component vendors supplying to smartphone OEMs have evolved a much different DNA than those supplying to PC makers.
Component vendors, meanwhile, struggle to gain a foothold in the Big Three platforms and face continued pricing pressures that can only be absorbed by continued volume.
Pressure from handset OEMs is a driver, but component vendors also tend to use competitive analysis to shape their marketing requirements.
The temptation for companies to differentiate via features is a virtuous cycle: component vendors (Broadcom, TI, Qualcomm) compete aggressively based on integration levels.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com