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Tag: electronics

  • Acer: Innovating the Future of Technology

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Acer.

    Electronic devices are one of the highly penetrated technical consumer products in households. Being the main driver of economic growth, the electronic industry enabled companies to design, manufacture, assemble, market, and service electronic products across the world.

    Acer Inc. is one of the world’s most impressive ICT companies that is providing world-class, technologically advanced electronic products to consumers. Let’s uncover all crucial aspects of Acer Inc. – its startup story, founders, funding, products and services, and other details.

    Acer – Highlights

    Company Name Acer Inc.
    Headquarters Xizhi, New Taipei, Taiwan
    Primary Industry Electronics
    Founders Stan Shih, Carplyn Yeh, George Huang
    Founded In 1976
    Website Acer.com

    Acer – About
    Acer – Industry
    Acer – Founders and Team
    Acer – Startup Story
    Acer – Mission and Vision
    Acer – Name, Logo, and Tagline
    Acer – Products and Services
    Acer – Challenges Faced
    Acer – Funding and Investments
    Acer – Patents and Trademarks
    Acer – Mergers and Acquisitions
    Acer – Growth
    Acer – Awards and Achievements
    Acer – Competitors

    Acer – About

    Acer is a Taiwanese multinational, public hardware and electronics corporation that specializes in advanced electronics technology. Apart from selling core IT products, its new business entity is involved in the integration of cloud services and platforms, developing smartphones and wearable devices with value-added IoT applications. Its Predator brand provides gaming PCs and accessories.

    The company is dedicated to the research, design, marketing, sales, and support of products and solutions to integrate people and technology.

    It is one of the top ICT companies worldwide with a presence in over 160 countries, including North America, India, Indonesia, Australia, and Europe. In September 2022, the company was recognized as the world’s 5th largest PC vendor by unit sales.

    Acer – Industry

    The electronics industry is an important economic sector involved in producing electronic devices. The advent of technology and digitalization has further pushed the demand for electronic devices.

    In 2019, the global consumer electronic market size was estimated to be $729.11 billion. However, amid pandemic the consumer electronics witnessed a negative demand shock across all regions due to Covid-19, and the market exhibited a decline of -5.4% in 2020. As per expert analysis, the market is projected to reach $989.37 billion in 2027 at a CAGR of 5.3% during the 2020-2027 period.

    Along with Acer, search Apple, Sony, Panasonic, search HP, Dell, Asus, and Lenovo are top electronic companies worldwide.

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    Acer – Founders and Team

    The company is founded by Stan Shih, Carplyn Yeh, and George Huang.

    Stan Shih

    Co-founder and Chairman of Acer Inc., Stan Shih graduated from National Chiao Tung University with a bachelor’s and master’s degree in electronic engineering. He retired in late 2004 and involved himself in charity work. However, in November 2013, he returned to the company after being reinstated as Honorary Chairman.

    Carplyn Yeh

    Spouse of Stan Shih, Carplyn Yeh is the co-founder of Acer. In 2019, Maverick Shih replaced Carplyn Yeh, as its representative on the board.

    Stan Shih, Carplyn Yeh - Co-founders, Acer
    Stan Shih, Carplyn Yeh – Co-founders, Acer

    George Huang

    Co-founder of Acer, George Huang serves as its CFO. In addition to this, he serves as the Chairman of Mondex Taiwan Inc. and EB-Easy and Vice Chairman of Taiwan Hong Yuan Investment Co. Ltd, Taiwan Fixed Network Co., and some other companies.

    George Huang - Co-founder, Acer
    George Huang – Co-founder, Acer

    Presently, Jason Chen is the President and CEO of Acer. Talking about the company’s size, it has more than 8,000 employees.

    Acer – Startup Story

    Formerly established as Multitech, Acer was set up by Stan Shih, his wife Carolyn Yeh, and five others in Hsinchu City, Taiwan, in 1976. The company commenced with 11 employees and capital worth $25,000. Initially, it started its operation as a distributor of electronic parts and a consultant for utilizing microprocessor technologies.

    in 1987, the company was renamed Acer and in 1998, it reorganized into five groups: Acer Sertek service Group, Acer International Service Group, Acer Information Products Group, Acer Peripheral Group, and Acer Semiconductor Group.

    It spun off the contract business in 2000 which resulted in 2 primary units- contract manufacturing and brand name sales. The company sold its manufacturing units Wistron and BenQ in 2001 to focus its resources on design and sales.

    In 2007, Acer bought Packard Bell in Europe and gateway in the US, making it the second-largest provider of notebooks and third-largest for computers. It announced the esports social platform PLANET9.gg in 2019, the main aim of which was to provide game analytics, social experiences, and community-organized competitions.

    Acer – Mission and Vision

    The mission of the company is to break barriers between people and technology. As Acer is evolving with the industry and changing lifestyles, it is focusing on creating a world where hardware, software, and services will fuse, leading to the curation of the ecosystem and new possibilities for both consumers and businesses.

    Acer – Name, Logo, and Tagline

    Acer - Name, Logo, Tagline
    Acer – Name, Logo, Tagline

    The visual identity design of Acer has always been laconic and minimalist. The first two versions of the company’s logo were created when it was known as Multitech (until 1987) and after its rebranding to Acer, another three versions of logo design were introduced.

    The famous tagline of the company is ‘explore beyond limits.’

    Acer – Products and Services

    The company offers multiple electronics products featuring advanced technology and these are desktops & all-in-ones, smartphones, laptops, Chromebooks, tablets, monitors, projectors, smart devices, gaming PCs, and accessories.

    Moreover, it provides multiple solutions, including TravelMate, Antimicrobial, military Standards, ChromeOS Enterprise, and Windows 11.

    Acer – Challenges Faced

    The late 1980s internal and external changes had a devastating effect on the company. There was once a time that price wars pushed component prices down and Acer posted its first-ever annual loss. In the mid-2000s, Acer’s North American market share slipped and its stock dropped to 50% of its IPO. The worse scenario was when Shih had to sell Acer’s headquarters for making profits in 1992.

    Acer – Funding and Investments

    Acer has been able to raise a total of $150.6 million in funding over 1 round. The Venture Series Unkown Round was undertaken on March 9, 2012. In addition, It has made 14 investments and the most recent one was on September 6, 2018, when Locix raised.

    Date Round Number of Investors Money Raised Lead Investor
    March 9, 2012 Venture Series, Unknown – $150.6 million –

    Acer – Patents and Trademarks

    Its intellectual property presently has 1,350 registered patents, primarily in the category of ‘Computing’ and ‘calculating.’ Some patent titles for which it has applied or granted are Electronic Device and Speaker Module, the device of Handling PUSCH Transmissions, Electronic Device, notebook Computer, and Key Structure and Keyboard.

    Moreover, the company has 211 registered trademarks categorized into the ‘Scientific and electric apparatus and instruments’ class.

    Acer – Mergers and Acquisitions

    Acer has acquired 7 companies and also has 1 divested asset. The largest acquisition of the company was in 2007 when it acquired Gateway Inc. for $710 million. Some other companies acquired are Counterpoint Computers, Altos Computer Corporation, Packard Bell, E-Ten, and iGware Inc.

    Acer – Growth

    For the year 2021, Acer’s revenue was estimated to be NT$319.01 billion, gross profits of NT$37.19 billion with an 11.7% margin, and also its operating income was NT$14.16 billion with a record-high 4.45 margin and 58.5% YOY growth.

    Acer – Awards and Achievements

    Its products have received prestigious awards from all around the world and some of these are:

    • BIG Innovation 2023
    • Red Dot Winner
    • CES 2022 Innovations Award Honoree
    • Taiwan Excellence 2022
    • Design Award 2022
    • Red Dot Winer 2021 Packaging Design
    • COMPUTEX d&I Award 2021
    • Good Design 2021
    Review of Acer Predator Triton 300 SE 

    Acer – Competitors

    Successfully running for almost 47 years now, Acer is giving tough competition to companies operating in similar industries. Some of its competitors are:

    • Incotex Electronics Group
    • American Megatrends
    • Pegatron
    • Hewlett Packard Enterprise
    • Apple
    • Lenovo
    • Asus
    • AOpen

    FAQs

    What is Acer and what does it do?

    Acer is a global technology company that sells a wide range of electronic products and hardware, primarily in the computer industry. It designs and sells laptops, desktops, monitors, tablets, projectors, and accessories.

    Acer offers a range of products across multiple categories, including laptops, desktops, monitors, projectors, tablets, and accessories. Some of Acer’s most popular products include:

    • Acer Aspire series laptops
    • Acer Predator series gaming laptops and desktops
    • Acer Nitro series gaming laptops and desktops
    • Acer Swift series ultra-thin laptops
    • Acer Chromebook laptops
    • Acer Spin series 2-in-1 laptops
    • Acer Predator series gaming monitors
    • Acer Holo360 camera

    How does Acer compare to other computer brands in terms of quality and price?

    Acer’s products are generally considered to be of good quality and competitive in price compared to other computer brands.

  • Foxconn – Success Story of the World’s Largest Electronics Manufacturer

    Foxconn, or Hon Hai Precision Industry Co Ltd, is the biggest global electronics manufacturing company. Based in Tucheng, Taiwan, Foxconn is the name that manufactures electronics items for many well-known American, Chinese, Canadian, and Japanese companies. Popular products manufactured by Foxconn included iPad, iPod, Kindle, BlackBerry, Nokia devices, Sony devices, and even Apple’s iPhone. Of late, Foxconn has also ventured into the auto manufacturing industry. Let’s explore more about this electronics manufacturing giant.

    Foxconn – Company Highlights

    Startup Name Foxconn Technology Group
    Also Known As Hon Hai Precision Industry Co. Ltd.
    Headquarters Tucheng District, New Taipei, Taiwan
    Industry Electronics
    Products Electronics, electronic components, PCBs, PCB components, computer chips.
    Founders Terry Gou
    Founded 20 February 1974
    Chairman Young Liu
    Website www.foxconn.com

    Foxconn – About
    Foxconn – Latest News
    Foxconn – Founder and CEO
    Foxconn – Startup Story
    Foxconn – Mission and Vision
    Foxconn – Logo
    Foxconn – Business Model and Revenue Model
    Foxconn – Employees
    Foxconn – Challenges Faced
    Foxconn – Funding and Investors
    Foxconn – Investments
    Foxconn – Mergers and Acquisitions
    Foxconn – Growth
    Foxconn – Competitors
    Foxconn – Awards and Achievements
    Foxconn – Future Plans

    Foxconn – About

    Foxconn Technology is a Taiwanese multinational electronics contract manufacturer that specializes in the manufacturing of computer, communications, and consumer electronics goods. In 2010, Foxconn was the world’s largest electronics manufacturing service provider and the third-largest technology company in terms of revenue.

    Foxconn manufactures a wide range of products. Metal shells, structural components, thermal modules, gaming console assembly goods, Desktop computers, notebook computers, tablet computers, servers, mobile phones, projectors, e-book readers, digital cameras, and workstation radiators are some products that Foxconn produces for its clients. The company’s goods are mostly distributed in China, the United States, and Japan.

    Other countries where the business has built R&D and production facilities include China, India, Japan, Vietnam, Malaysia, the Czech Republic, the United States, and others. The firm has over 83,500 patents and focuses on research and development.

    Foxconn is committed to supporting environmental sustainability in the manufacturing process and serving as a best-practices model for global organizations, in addition to optimizing value creation for clients.

    Over the years, Foxconn Group has expanded not only its capabilities into the development of electric vehicles, digital health, and robotics, but also three key technologies – AI, semiconductors, and next-generation communications technology – by leveraging its expertise in Cloud Computing, Mobile Devices, IoT, Big Data, AI, Smart Networks, and Robotics/Automation.

    Foxconn – Latest News

    January 10, 2022 – Foxconn announced to reopen its Sriperumbudur factory in Tamil Nadu on January 12, 2022, as per the statement of Sriperumbudur MLA, K Selvaperunthagai to the assembly.

    In August 2021, Stellantis, a global automaker, and Foxconn announced a joint venture to develop a “smart cockpit” for automobiles that would include navigation, voice help, and payment services. The joint venture between Foxconn and Stellantis, called ‘Mobile Drive’ will make the smart cockpits available to other carmakers.

    “Its roadmap of software innovations will include artificial intelligence-based applications, navigation, voice assistance, e-commerce store operations, and payment services integration, amongst others,” the companies said in a joint statement.

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    Foxconn – Founder and CEO

    Hon Hai Precision Industry Co., Ltd. or Foxconn was founded by Terry Gou in 1974 as an electrical component maker.

    Terry Gou

    Terry Gou is the founder and CEO of Foxconn. Born on 18th October 1950, Terry Gou is a Taiwanese billionaire businessman. After graduation, Gou worked with several factories before founding Hon Hai (Foxconn’s parent company) in 1974 in Taiwan. Hon Hai started as a plastic part manufacturer for television, with just 10 elderly workers.

    Foxconn Founder & CEO - Terry Gou
    Foxconn Founder & CEO – Terry Gou

    Today, Foxconn is the world’s biggest contract electronics manufacturer, employing 1.2 million people in mainland China,  and serving as China’s largest private employer and exporter. It has plants in various countries, the majority of which are located in mainland China.

    Foxconn – Startup Story

    Terry Gou founded Hon Hai (Foxconn) in Taiwan in 1974 with $7,500 in seed money and 10 older labourers, working out of a leased shed in Tucheng, a Taipei suburb, producing plastic parts for television sets. In 1980, he received an order from Atari to create the console joystick, which marked a turning point in his career.

    In the 1980s, he extended his firm even further by going on an 11-month road tour across the United States in pursuit of new clients. Despite having security called on him numerous times, Gou was able to break into many organizations uninvited and obtain further orders as an aggressive salesperson.

    He built his first plant in mainland China, in Shenzhen, in 1988, and it is still his largest factory today. When Gou vertically integrated the assembly process and work facilities in China, operations grew dramatically. The factory site was transformed into a campus including accommodation, dining, medical care, burial for the workers, and poultry raising to supply the restaurant.

    Hon Hai began producing Compaq desktop chassis in 1996. This was a watershed moment, and it led to the development of bare-bones chassis for other high-profile clients including HP, IBM, and Apple. Foxconn evolved to become a consumer electronics behemoth in just a few years.

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    Foxconn – Mission and Vision

    Foxconn’s vision statement says, “Creating comprehensive smart living experiences for our customers across the globe.”

    Foxconn’s mission statement says, “To ensure all employees to take active roles in meeting company’s global targets, by decomposing them into departmentally distributed realistic targets/ To ensure a reliable organization and discipline where all employees will be glad to be a part in/ To act continuously on increasing the turnover by considering the principle of “Win-Win”/ To ensure the use of all resources effectively and efficiently/ To create a clean, healthy and safe production and work environment which respects to human and considers the next generations.”

    Foxconn Company Logo
    Foxconn Company Logo

    Foxconn – Business Model and Revenue Model

    Mass Manufacturing

    Foxconn serves as a component supplier to several OEMs. It focuses on the mass manufacture of specialized parts for electrical goods in this section. It may reach huge economies of scale by focusing on certain components, making total manufacturing cheaper.

    Contract Manufacturer

    Foxconn also serves as a contract manufacturer for corporations like Apple. This enables Apple to mass-produce its goods using Foxconn’s massive manufacturing facilities and low-cost facilities. By providing contract manufacturing, Foxconn helps its clients to avoid the high costs of constructing their own production facilities.

    Low-Cost Manufacturing Provider

    When acting as a contract manufacturer, Foxconn provides clients with fully integrated solutions that encompass the whole production process. In this way, it reduces production costs per unit by leveraging its low-cost manufacturing knowledge and the scale of its manufacturing facilities. It can manufacture items for its clients, such as the Apple iPhone, for less than Apple could produce it directly, thanks to its whole service offering.

    Whitelabel Manufacturing

    In addition to private label manufacture, which Foxconn conducts for Apple through contract manufacturing, it also provides white-label items. These are usually not branded with Foxconn’s logo, but rather with the distributor’s, and sold to a variety of distributors. Because the underlying technology is identical, this enables these generally low-priced electronic items to be made on a larger scale and hence at a cheaper cost than if they were produced by a single distributor.

    Foxconn – Employees

    • Terry Gou – Founder
    • Alan Yeung – Director US Strategic Initiatives
    • Fang Ming Lu – GM Asia-Pacific Region & Board of Directors (Hon Hai
    • Precision Industry Co. Ltd)
    • Min Chih Chuo – Corporate Supervisor
    • Louis Woo – Executive
    • Daniel Ying-Tso Lai – Senior Deputy Manager
    • Aymar de Lencquesaing – Vice Chairman
    • Jack Lee – Founding Partner, Executive Director

    Foxconn – Challenges Faced

    Foxconn’s labour policies were being scrutinized again and again. According to an investigation by China Labor Watch, a New York-based labour advocacy group, and The Observer, a British newspaper, a Foxconn facility in Hengyang, China, breached labour regulations. Amazon’s Echo smart speakers and Kindle devices are made at this facility.

    Foxconn said that it was “carrying out a full investigation of the areas raised by that report.” The company added that it “works hard to comply with all relevant laws and regulations” in the markets where it operates and that “if infractions are identified, we work to immediately rectify them.”

    Here’s an overview of some of the problems allegedly plaguing Foxconn’s factories:

    • Suicides are a common occurrence – In 2010, the firm was rocked by a wave of employee suicides. Since then, there have been further occurrences.
    • The exploitation of wages and working hours – Foxconn was accused in 2012 of underpaying its workers and forcing them to work long hours. As a result, the firm has promised to shorten shifts and boost salaries.
    • Serious Accidents – An electric shock in 2011 left one Foxconn employee with neurological damage. In the same year, an explosion in a factory killed four people and wounded another 18.
    • Workers under the age of 18 and those working illegally –  In 2012, Foxconn acknowledged employing minors as young as 14 at one of its facilities. Late this year, Apple acknowledged that student employees were found working overtime at a factory where the iPhone X is produced, in contravention of local rules.
    • Riots are a common occurrence -. In 2012, a major riot involving over 1,000 workers occurred at one of the company’s plants.
    • Poor living conditions – In 2012, the New York Times stated that three-room staff flats could house up to 20 workers.

    For its part, Foxconn has attempted to solve problems as they arise, making its workplaces safer and raising compensation to boost morale.

    Foxconn – Funding and Investors

    Date Round Amount Lead Investors
    Apr 4, 2017 Series B $20M Sprint Vc

    Foxconn – Investments

    Foxconn Technology Group has invested in 74 companies. GyroGear, which raised £3.1 million on February 25, 2021, was their most recent investment. Below are some major investments made by Foxconn.

    Date Organization Name Round Amount
    Feb 25, 2021 GyroGear Seed Round £3.1M
    Jan 19, 2021 Kneron Venture Round –
    Sep 22, 2020 SigmaSense Series A $22M
    Aug 6, 2020 Yungongchang Series B CN¥100M
    Jan 16, 2020 Nanox Imaging Series B $26M
    Jan 8, 2020 Zap Surgical Systems Private Equity Round $81M
    Sep 4, 2019 Light Seed Round –
    Apr 11, 2019 PENSEES Series A CN¥150M
    Mar 21, 2019 Yungongchang Series A –
    Jan 29, 2019 StormForge Series A $5M

    Foxconn – Mergers and Acquisitions

    Acquiree Name About Acquiree Date Amount
    Sonder Design Sonder seeks to create beautiful products that delight, surprise & connect with its customers. Dec 1, 2019 $9.8M
    Moran Cognitive Technology Founded in May 2016, located in 768 Creative Industrial Zone, Haidian, Beijing, China Aug 22, 2018 $10M
    flnet.com flnet.com is an e-commerce platform for tablet PCs, laptops, one machine, portable TV, LCD TV, etc. May 25, 2017 CN¥2B
    SMART Technologies SMART Technologies develops interactive whiteboards and group collaboration tools for classrooms and meeting rooms. May 26, 2016 $200M
    TeleEye TeleEye is a surveillance camera developer company. Apr 13, 2016 $203.7M
    Sharp Sharp is engaged in the manufacture and sale of electric telecommunication, electric, and electronic equipments. Mar 30, 2016 $3.8B
    SoftBank Group SoftBank Group is a holding company focused on artificial intelligence and other emerging technologies. Feb 27, 2016 $600M
    Ennoconn Corp Ennoconn Corp is an Industrial motherboard designer and a total hardware system solution provider to various vertical market applications Jan 1, 2007 –

    Foxconn – Growth

    Foxconn forecasted a 10% increase in revenue in 2021, owing to “stronger than projected” sales of smartphones, particularly the new iPhone 12, and telecommuting gadgets, as a result of the coronavirus-induced work-from-home trend. Foxconn’s stock has climbed by about 41% this year(2021).

    Foxconn reported NT$5.35 trillion in revenue in 2020, which is around $192 billion in U.S. dollars. Since its inception, the firm has earned several worldwide honours and recognition. In the Fortune Global 500 rankings for 2020, the firm was placed 26th and 25th in the Top 100 Digital Companies in the Forbes list of the World’s Best Employers for 2019.

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    Foxconn – Competitors

    Jabil, Toshiba, NN LABS, TDK, and Celestica are among Foxconn’s competitors.

    Foxconn – Awards and Achievements

    Recent awards and achievements of Foxconn:-

    2017 – Shortlisted in Forbes World’s Best Employers, Announced Key Strategic Tenets of Cloud Computing, Mobile Terminals, Internet of Things (IoT), Big Data, Artificial Intelligence (AI), High-Speed Networks, and Robots, Foxconn Interconnect Technology listed on the Hong Kong Stock Exchange, U.S. Flying Eagle Program launched.

    2018 – Clarivate Top 100 Global Innovators – awarded in 4 consecutive years – only Taiwan’s private enterprise on the list, Foxconn Czech Republic Ranked 2nd in the Czech Republic Top 100 Companies, Foxconn Industrial Internet (Fii) listed on A shares in the Shanghai Stock Exchange.

    2019 – Ranked 25th among Forbes Top 100 Digital Companies.

    2020 – Ranked 26th among Fortune Global 500 rankings.

    Foxconn – Future Plans

    Hon Hai Precision Industry Co. has announced intentions to develop its embryonic cars sector to counteract decreasing growth in its main consumer electronics assembly industry. Foxconn however has no plans to sell these vehicles under its own brand but will manufacture them for other car brands.

    The firm unveiled its first electric vehicle chassis as well as a software platform geared at assisting EV manufacturers in bringing models to market more quickly. The business also stated that by 2024, it intends to develop a solid-state battery that may replace lithium-ion batteries in electric vehicles.

    As told by Foxconn Chairman Young Liu, the business is aiming for a 10% share of the EV market by 2025, with roughly 3 million vehicles utilizing its platform.

    Hon Hai said earlier this year that it will form a joint venture in China with Fiat Chrysler Automobiles NV to develop and manufacture electric vehicles. It’s also forming an electric car design cooperation with the Yulon group’s Hua-Chuang Automobile Information Technical Center. Tesla Inc. presently receives certain components from the Taiwanese firm.

    By 2025, the company hopes to increase its gross margin to 10% through automotive and other new operations.

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    Foxconn – FAQs

    Who owns Foxconn?

    Foxconn was founded by Terry Gou. He is the Chairman and Chief Executive Officer of Foxconn.

    What does Foxconn do?

    Foxconn Technology is a Taiwanese multinational electronics contract manufacturer that specializes in computer, communications, and consumer electronics goods. Metal shells, structural components, thermal modules, and gaming console assembly goods are all available from the company.

    Is Foxconn multinational?

    Yes, Foxconn is a multinational electronics contract manufacturer.

    When was Foxconn founded?

    Terry Gou established Hon Hai in Taiwan in 1974.

    What is the other name of the company Foxconn?

    Foxconn is also known as Hon Hai.

    Is Foxconn a Chinese company?

    Foxconn is a Taiwanese multinational electronics contract manufacturer headquartered in Tucheng, New Taipei City, Taiwan.

    Which companies do Foxconn compete with?

    Jabil, Toshiba, NN LABS, TDK, and Celestica are among Foxconn’s competitors.

  • Top 3 Worst-hit Companies by the Global Semiconductor Shortage

    For any business involving semiconductors, you must have heard or seen about the chip shortage lately. Well, creating a chip is an extremely long, entangled and expensive process, which definitely puts it in the spot of shortage.

    Chips (Semiconductor or microchip) have made many things possible today. These are the major elements for any gadgets or you can simply refer to them as the life of the gadgets. And for this semiconductor industry, Taiwan dominates over everyone in this entire world. It is even responsible for more than half of the global market share of generating these chips.

    But lately, in the pandemic of Covid-19, a major shortage of these silicon chips have been noted. According to a report by IEEE Spectrum, the automakers abolished the production of vehicles at the very beginning of the pandemic and ordered huge amounts of chips.

    Looking at these statistics, the chipmakers thought that other industries will also follow this and this resulted in decreased chip production. But what actually happened was entirely the opposite of what the chipmakers thought! Demands for chips rose because of the digital remote of the classrooms and offices.

    Because of this, some of the biggest companies across the world got affected pretty badly. And that’s what we are discussing in this article. We have described how some of the top companies got affected by the shortage of chips. Let’s get started!

    Top 3 Companies affected by Global Chip Shortage

    Apple
    Nintendo
    Sony
    FAQ

    Apple

    Apple iPad 2021
    Apple iPad 2021

    This might come as a little shocking to you that a company as big as Apple gets affected by the chips shortage! But this is true.

    As of April 2020, Apple published its second-quarter revenue report which clearly outdated the estimation made by the analysts. Within the same period, the CFO Luca Maestri, through a conference call, warned the company that because of the supply limitations, the revenue can be decreased by $3-4 billion, that is, its third-quarter revenue. He mentioned that because of the shortage in the chip’s supply, the sales of iPads and Macs can be majorly affected.

    These gadgets carry a very high demand among the customers, especially in the pandemic when everything went digital. The CEO of the company, Tim Cook said that the chip shortage only affected the “hereditary nodes” of the previous chips, although the company didn’t really reveal the specification of the chip.

    Apple entirely relies on Taiwan Semiconductor Manufacturing, for the production of chips needed for the creation of Apple’s products.

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    Nintendo

    Nintendo Switch OLED
    Nintendo Switch OLED

    The company, Nintendo, has already established itself with some very serious complications. This was mainly because the investors questioned how Nintendo’s aging Switch gaming console could survive or beat the PS5 and Microsoft’s Xbox series consoles. But the company proved everyone wrong when it came out with a tremendous fourth-quarter revenue report, beating the estimation made by the analysts.

    Nintendo got majorly affected because of the chip shortage and brought hard competition to the robust sales of the company throughout the pandemic. Because of this, the company is expected to decrease the operating profit up to 9% and 22%. Alongside, the annual Switch console shipment will also decrease by around 11%.

    Nintendo uses the fast NVIDIA chip along with the Samsung OLED display for the development of its upgraded Nintendo Switch OLED. But because of the chip shortage, it became difficult to launch these.

    Sony

    Sony PS5
    Sony PS5

    The very famous Sony came out with the latest PS5 consoles at the end of 2020. Chips were expected to play a very vital role in this as they would enhance the gaming and networking services segment. This alone holds the revenue of 30% along with 35% of the operating profit in the fiscal year 2020.

    The gaming and network services rose up to 35% in revenue in the year 2020 which increased the sales of PS4 software alongside the launch of PS5’s launch. In fact, the PS5 also witnessed huge profit at the beginning of its sales. Sony sold around 7.8 million PS5 units by the end of March 2020 and the estimated data showed that the sales would increase more vibrantly throughout the year.

    But because of the global chips shortage, the PS5 console could not reach the growth trajectory which was expected to rise with great heights. The chip shortage caused delays in the third-party game publishers that resulted in the postponing of the PS5 console among the larger audience.

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    Conclusion

    The global chips shortage resulted in some major losses for companies. Although both Sony and TSMC are working on speeding the production of chips all over the world. Still, many doubt that won’t be possible on a larger scale. Many theories and speculations have been made on this venture but still, no proper answer has been finalized for a better cause.

    The chips/microchips/semiconductors are the basic element for any electronic gadgets and companies like Apple or Sony that produce these on a massive scale face major issues and losses during such crises. In this article, we highlighted the three major companies that faced a major crisis because of the shortage of chips.

    FAQ

    Why is there a silicon chip shortage?

    The reason behind global chip shortage is supply chain disruptions due to the pandemic and a sharp rise in demand for electronic goods.

    How long will the chip shortage last?

    According to some analysts the shortage will likely last until 2023.

    Which is the largest chip manufacturer?

    Taiwan Semiconductor Manufacturing Co. or TSMC, is the world’s largest contract manufacturer of the semiconductor chips.

  • How To Start Electronic Store Business

    The electronics business is becoming one of the most demanded business ideas in today’s digital world. As the electronic store is increased years by year everything becomes digital. Also, various brands create a need for start an electronic store business to access all the brands from one roof. The big electronic company can’t open a store in every location. Here comes the electronic store. Even if there is one store per city then also it is difficult for the people. You being a second or third-tier will act as a distributor for these electronic items.

    The amounts of profit depend on many factors:

    • Business size
    • Demand
    • Products sold
    • Mediators in selling
    • The cost price of the product.

    So starting an electronic store in this digital world will create rapid growth in the market. Also, many electronic stores in the market’s why there will be a lot of competition you have to stand out from it. Here we will discuss in brief how you start an electronic store business.

    How To Start Electronic Store Business
    Step 1. Research your Area
    Step 2. Partnership With Corporates
    Step 3. Business Plan For Electronics Business
    Step 4. Registration of the Business
    Step 5. Location of the Electronics Store
    Step 6. How to Store Electronics
    Step 7. Advertising Electronics Store
    Step 8. Hiring employees
    Step 9. Insurance
    FAQs

    How to start electronic shop?

    How To Start Electronic Store Business

    Here are some of the steps to keep in mind while starting an electronic store business.

    Step 1. Research your Area

    Consumer Electronics market trends
    Consumer Electronics market trends

    You need to do some research before starting the business. Do some competitive analysis. Create a plan to differentiate your offering. Try to make networking related to your business. Before you waste time on the advertising of your electronic store try to analyze the market. If your locality is already full of such a store you have to think about the side of town. And keep in mind one of the most important things is that you have to learn that the other electronic shop’s persons how they behave with the customers because only the customers will increase or decrease the profit of your business.

    Step 2. Partnership With Corporates

    Teaming up with other businesses can result in a huge success for your business also with the business with whom you are a partner. When you have done right everything it brings many things like additional exposure and revenue for both the business and most importantly becomes happy with more customers and sales. You should also think about the nature of your agreement. How will the partnership work and what’s your ideal outcome? It is a good idea to test the partnership first before getting finally commitment.

    When you and your business partner have different strengths, you will double the profit of your startup team. Succeeding as business partners doesn’t require having run a business together or even having worked together before. You can organize a partnership as a general partnership, limited partnership, or limited liability partnership. For your partnership to work both of you must feel comfortable openly sharing your opinions and make a detailed plan of how you increase your profits.

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    Step 3. Business Plan For Electronics Business

    Regardless of the kind of business you are starting, a business plan is used as an organization tool a guide on how to move forward. A business plan is the overall summary of your business. Briefly describe what you sell and who you sell it to. If you don’t have products then plan how you plan your product and how you will connect with suppliers. Also, you must include a company overview of the business plan. Your next step is to perform an in-depth market analysis of the rest electronic store. You have to focus on many things some important aspects are listed below:

    • Executive Summary
    • Products
    • Management
    • Objectives
    • Mission
    • Key to success
    • Company summary
    • Company ownership
    • Start-up summary
    • Market analysis summary
    • Market segmentation
    • Commercial sales
    • Target market segment strategy
    • Industry analysis
    • Competition
    • Buying patterns

    Step 4. Registration of the Business

    A vital component of any type of store is obtaining the requisite permits and licenses. Both the state and the government have specific regulations that you must satisfy before opening the store. As a retailer, you may also need special permits for selling particular products.

    Some tips:

    • Contact your state revenue agency to get the required registration materials and instructions. You must register your store name. Each business acquires a state tax ID number for many processes.
    • Purchase the required licenses from your local government licensing department.
    • Contact your product supplier directly to register as a preferential retailer.

    Step 5. Location of the Electronics Store

    electronic items for electronic store
    electronic items for electronic store

    The best location for opening a store is the visibility, affordability, and lease terms you can live with. There are three phases of changing the location for opening your store is a selection of a city, choice of an area of location within a city, and identification of a specific site. Besides, you should look at neighborhood traffic generators, such as other retailers that draw people to the area, industrial or office parks, schools, colleges, and hospital complexes.

    In choosing a city, investigate these main factors:

    • Size of the city’s trading area
    • Population and population trends
    • Total purchasing power and who has it
    • Total retail trade potential for different lines of trade
    • Number and size of the competition
    • Quality and aggressiveness of competition

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    Step 6. How to Store Electronics

    If your customer some defects in electronic items they will move to another store. As there will be large purchases it is important to protect your investment by understanding the best electronic storage methods for the long term without any damaging them. Understanding electronics storage solutions best practices like planning and keeping all the components together will help protect your items in storage. Understanding electronics storage involves also having the proper electronics storage solutions, like moving and packing supplies, readily available.

    Some tips how to store electronics:

    • Keep electronics towards the back for extra protection
    • Check electronics for insertable materials
    • No original box then wrap electronics in anti-static foam
    • Use original packaging
    • Take a picture of the electronic connections
    • Label accessories and keep them together
    • Create a list of all items inside of electronic box
    • Store all electronics in a climate controlled storage unit

    Step 7. Advertising Electronics Store

    The competition between electronic stores is very high everywhere due to the fact there are a lot of businesses of this kind and another reason is the products that they sell are in high demand. Opening a store does not ensure that customers will always come to your shop. You have to advertise your store.

    Put the top tier products on display

    You have seen that many electronics store are displaying their products. The reason is it will attract customer’s attention and make them come in. This is the best way to promote some of your best products being to put them on display where everyone can see them.

    Hold contests and win free electronics

    People love the most is getting products for free. You have to conduct contests where customers can have some fun and won great prizes as well as to make them come to your store more often and to spread the word about your store.

    Offer promotions and bring more customers

    As soon as people heard about the promotion word they will move to your store and purchase products and the most interesting part about this when one person hears this the told to another person and immediately throughout the entire area where your store is located. To make it more exciting you may also include offer packs.

    Promote your business on TV

    It is the most trending and rapid way to advertise anything on local TV channels. It might cost a little bit but the profits you gain is very much.

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    Step 8. Hiring employees

    Finding and recruiting top talent is always a priority for all retailers. They’re important positions for any retail business. By this, you can sell more products. The qualities you must see when hiring  employees for your store:

    • Willing and eager to learn
    • Patient
    • Comfortable with people
    • Competitive
    • Team-oriented
    • Emphatic

    The employees you hired from them based on talents and qualities you can give the below positions to running your store smoothly and customers not face any problems.

    • Floor manager
    • Sales representatives
    • Stock manager
    • Cashier
    • Supervisors
    • Promotional heads

    Step 9. Insurance

    A business insurance is like a safety belt which offers financial protection to the business from various risks. Electronics store insurances are one that holds in a number of types. Some of the insurances offered for an electronics store are:

    • Electronics store general liability insurance
    • Electronics store commercial auto insurance
    • Electronics store business property insurance
    • Electronics store Cyber liability insurance
    • Electronics store Worker’s compensation
    • Electronics store Crime insurance

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    FAQs

    Is electronic business profitable?

    Yes, electronics business is quite profitable. There is speedy advancement in the technologies and the electronics sector is upgrading. So, electronics items has a huge demand. It makes starting an electronics business quite profitable idea.

    Which are electronic items to sell in an electronic store?

    • Mobile Devices
    • Wearables
    • TVs
    • Set Top Boxes
    • Monitors.
    • Laptops
    • Tablets
    • Computers.
    • Printers
    • Scanner

  • Why LG is Shutting down its Mobile Business after 26 years

    LG is a South Korean company that was one of the leading manufacturers of mobile phones. The company has maintained the No 3 position in the manufacturing of the smartphones for a very long time. The company has been finding it hard to maintain its financial position and to increase the sales of the mobile phones amid the competitors.

    Recently the company has announced that it is going to shut down the mobile phone business. Let’s look at why the company has decided to shut down its mobile phone business.

    Statement released by LG
    Reason for the shut down
    LG Failed to make its mark
    Future of LG customers
    Future of LG Employees
    Future Plans of LG
    FAQ

    Statement released by LG

    On 5 April 2020, LG had announced that it will shut down its mobile phone business. The South Korean firm LG had said in a statement that their Board of Directors had approved the decision to discontinue the business.

    This unsurprising move from the company comes after its statement in the month of January, where LG had told that it was trying to review the direction of their smartphone business. The company has announced that it will close down its mobile business worldwide.

    LG has become the latest legacy phone to exit the mobile phone making business. The company said that it will shut down its mobile phone business by the end of July.

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    Reason for the shut down

    The company has been struggling to compete with the global competitors such as Apple, Samsung, One Plus, and Xiaomi who dominates the mobile phone market. Apple and Samsung are the only brands that have maintained their sales over the years in this market.

    Even the legacy phone brands such as Nokia and Blackberry have faced a lot of struggle and have lost their market domination. LG had failed to keep their products with the competitors and the new players are providing smartphones with better software and Operating systems at a reasonable price.

    In 2007, LG was the fifth biggest smartphone maker globally. This was when the first iPhone was launched and went into sale. In the fourth quarter of 2020, LG couldn’t get ranked in the list of top whereas Huawei which is struggling because of certain US sanctions has managed to be in the fifth position.

    LG Failed to make its mark

    Over the past decade, it became harder to get consumer attention in mobile because of the growth of Android phones. LG had been experimenting with a lot of innovative designs in the last couple of years to attract the consumers.

    LG continuously focused on two segments in the market which were high-end and mid-range smartphones. These two segments have become very competitive in the past decade because of the Chinese smartphone manufacturers such as Huawei, One Plus, Oppo, Xiaomi, and Vivo.

    These companies have been releasing new models with software updates and the latest camera feature phones every often.

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    Future of LG customers

    LG has told that it will continue to sell the smartphones as long as their already manufactured and stored inventory is exhausted. The company also said that it will continue providing services to their existing customers such as software updates, customer support, etc. for a period of time. They said that it would differ from one particular region to another.

    On the request towards the company’s US business on how long will LG provide services to US customers did not receive any reply. A representative of AT&T has told that they are aware of LG shutting down their mobile phone business and added on saying that they would continue to support the people who use LG devices on their network as LG makes this move. This step is taken by AT&T as a commitment towards their customers.

    Number of smartphones sold to end users worldwide
    Number of smartphones sold to end users worldwide

    Future of LG Employees

    It is said that LG will likely lay off some of their workforce. Some of them would probably be transferred to the other sectors of LG’s business. The company has a lot of employees around the world as it has phone manufacturing centers in China, Vietnam, and Brazil.

    The company is trying to repurpose its manufacturing facilities to be used for the manufacture of other products. Even closure of these facilities is a possibility. They said that the status of their workforce that is involved in the phone business will be decided at their local level.

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    Future Plans of LG

    In the coming years, LG is planning to concentrate on leveraging their expertise in the mobile industry and to develop and work on building mobility-related technologies such as 6G to strengthen their competitiveness in various other business areas.

    The company has plans to retain their core technologies that they had developed during the two decades of their mobile manufacturing business. The company is planning to apply it to their existing and future products.

    The company has plans to focus more on its smart home products from smartphones. LG is one of the biggest providers of smart home products globally. The company is further planning to concentrate on electric vehicle components, Artificial Intelligence, robotics, business-to-business products, and other connected devices.

    FAQ

    What does LG stand for?

    The company’s original name was Lucky Goldstar but it has become more synonymous with the company’s tag line “Life’s Good”.

    Is LG going to stop making phones?

    LG has released a statement saying that it is getting out of its mobile phone business to focus on other products and services.

    Is LG is an Indian company?

    No, LG is an South Korean multinational conglomerate corporation founded by Koo In-hwoi.

    Conclusion

    LG’s poor financial performance in their smartphone business and the information regarding it has been public for the past few years. Just like other legacy phones even LG has failed to retain in the mobile manufacturing business and to turn things around.

  • Is Global Semiconductor Shortage Impacting the Automotive Industry

    The global automotive and tech industries are on the edge as a wave of a supply shortage of semiconductors has hit them hard and how. Computer chips manage or probably run almost everything under the sun.

    From nuclear plants to the internet cables, stabilizing suspension systems, and regulating engine temperatures, we need them more than ever since technology surrounds us in a way that we are yet to comprehend.

    Computer chips are almost everywhere, in the cars we drive, in the smartphones we use, in devices like refrigerators, laptops, television sets, etc. We can’t imagine our lives without these. The shortage of these chips has turned down a few economies and soared for a few others around the globe.

    What are semiconductors
    Scarcity of Semiconductors around the Globe
    Reasons for the scarcity of semiconductors
    Higher demand for semiconductors
    Effects on the Indian market
    What happens next
    FAQ

    What are semiconductors

    Semiconductors or chips as we commonly know them are basic structures used for encrypting logic and memory functions in automobiles, phones, laptops, and gaming devices. Semiconductors are integrated or electronic circuits printed on conducting materials, the most common being silicon. They are the basic building blocks for making computers and running software.

    Over the decades, developers have managed to squeeze more circuits into tinier circuits making our computers and devices smaller and cheaper. The semiconductor fabrication is based on several transistors, the smallest part of the chip’s electronic component, per square millimeter. The factories or facilities that produce semiconductors are known as “Fabs”.

    The most advanced Fabs are known for semiconductors that measure 5 nanometers. That’s a millionth of a millimeter. Smaller the semiconductor, the higher the transistor count per square millimeter. The most highly functioning semiconductors are ones having a density of 100 transistors per square millimeter.

    Scarcity of Semiconductors around the Globe

    A chain reaction was set off when the pandemic hit us. As governments around the world imposed strict lockdowns, the demands for automobiles took a sharp U-turn. The automobile industry is one of the largest consumers of electronic chips as cars are turning into devices with power windows, machine control, and other features that use Artificial Intelligence. All these functions are integrated through semiconductors.

    Automakers like General Motors and Ford shut down several plants due to a decline in demand and production was brought to a halt. The sales fell drastically and companies cut short on their purchases of semiconductors.

    While the pandemic forced us to stay at home the need for indoor entertainment rose substantially. This resulted in an increased demand for tablets, smartphones, and laptops worldwide. The ripple effect called upon a higher demand for semiconductors in the tech industry. Tech companies began roping in more chips and some even stacked a few envisioning the shifts in the global demand.

    The market recovered at a better pace than anticipated and the demand for the auto making companies started to re-surface. Meanwhile, the tech industry gorged up 70% of the semiconductors being produced and left the automakers high and dry.

    Largest Semiconductor Companies by Revenue
    Largest Semiconductor Companies by Revenue

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    Reasons for the scarcity of semiconductors

    The USA is the largest producer of semiconductors in the world. Due to reforms implied by former President Donald Trump, the USA severed ties with Chinese companies and limited the chip sales export to China. China stockpiled chips and other countries followed suit.

    The American break up with Chinese companies turned the demand wave to TSMC, Taiwan Semiconductor Manufacturing Company, and other East Asian companies. TSMC and Samsung created a monopoly over the production of semiconductors which add up to 70% of the total production.

    America’s semiconductor production has plummeted to 12% from 37% since 1990. Consecutive changes in political leaders and bare minimum funds have discouraged the overall production.

    Other factors that catered to the scarcity were a huge fire in a Japanese chip factory in October 2020 and a cold snap that withered two semiconductor factories in Texas.

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    Higher demand for semiconductors

    The TSMC and other east Asian companies are working under extreme pressure to meet the demand worldwide. It might sound exuberant for the company, but it is far from what reality is.

    One might wonder why can’t more Fabs be built in order to sustain the demand. Fabs have peculiar prerequisites such as temperature-controlled environments, dust control, highly volatile pieces of equipment, and a minimum of five years of time to get it ready for production.

    Not to mention the sky-high cost requirement for setting up a Fab. No wonder the largest producer of chips America, is far from its competitors lacking the funds and support from its government.

    Reportedly, the demand has rocketed due to the requirement of semiconductors in the production of 5G smartphones. Every advancement in the electronic industry is largely based on the exploitation of semiconductors. As the world gets 5G ready, companies have massive supply demands for semiconductors.

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    Effects on the Indian market

    Indian automakers depend largely on imports of semiconductors. The worldwide demand, too few supplying agencies, and the waiting period have the Indian automakers worried as they import electronic requirements totaling to Rs 3000 crore every year.

    “The big concern for the auto industry and Mahindra, and in fact for the world, is the semiconductor shortage. (It is) something that we’re very perplexed with, and something where the end is not clearly known as to when this fall will go away,” Pawan Goenka, MD, and CEO of Mahindra & Mahindra, said during a press conference on the company’s Q3 results, on February 5.

    During Tata Motors’ press conference on its Q3 results on January 29, PB Balaji, CFO, Tata Motors, said that up until January, there has been no impact on the company due to the shortage of semiconductors. “Having said that, the risks are real and conversations are happening with all tier-1 and tier-2 suppliers and with the semiconductors industry as well to ensure that supplies continue.

    From a demand perspective, we are going very fast, and that’s also adding to the pressure that we have. This is something that is being managed on a live basis, and we will ensure that we do our best to minimize the impact.”

    “This is a challenge, and you need a hell of a lot of firefighting to get through,” Balaji added.

    What happens next

    The shortage will entail a while longer as the USA finds solutions for the production and sale of semiconductors. The world waits as new policies are put in place and the trade resumes.

    Chip companies might be benefitting from the new demand drive but this locks them up in a long-term deal which brings more pressure on production.

    The biggest winners are companies such as California-based Applied Materials and Lam search and Japan-based Tokyo Electron who make the highly complex and expensive manufacturing equipment required to produce semiconductors.

    FAQ

    Why is there a shortage of computer chips?

    The pandemic resulted in an increased demand for tablets, smartphones, and laptops worldwide. The ripple effect called upon a higher demand for semiconductors in the tech industry.

    Where are most semiconductors manufactured?

    Taiwan, South Korea and China are the countries where most semiconductors are manufactured.

    Why are semiconductors so important?

    Semiconductors are an essential component of electronic devices, , computing, healthcare, military systems, and transportation. In short Semiconductors are the Brains of Modern Electronics.

    Conclusion

    Companies around the world believe that the demand for chips will barely slow down. The share prices of TSMC and Samsung have grown over 190% and 61% respectively over the last few years, all thanks to the shortage of chips.

    The automakers falling short of chips, need to take a long hard look at their supply chain management and cost-effective pricing as many automobile companies saw a hike in their products due to this scenario.

    This might exhibit as a complex problem for bigger players in the global market but the end result is inflicted upon the consumer who is forced to pay a higher cost.

  • BBK Electronics-The manufacturer who Rivaled Apple [Case Study]

    BBK electronics is a Chinese multinational conglomerate. It owns over half of the smartphone market in India through its subsidiaries OPPO, VIVO, Realme, iQOO and OnePlus. It has been branded as the most innovative company for its ingenious strategy. BBK has multiple brands to cater to every market segment from entry-level models to mid-range and premium models. In 2017, BBK electronics emerged as the second-largest producer of smartphones by shipping over 56.7 million smartphones, beating Apple and Huawei.

    History
    The Strategy Behind Each of their Brands
    FAQ

    History

    BBK Electronics was founded in the year 1998 by a Chinese billionaire and entrepreneur Duan Yongping. After he left his gaming company Subor which was a heavy competitor to Nintendo in the 1990s. He started an electronics manufacturing company named Bubugao, which later was renamed BBK electronics. BBK Electronics specialized in consumer electronics such as television sets, CD and DVD players, Blu ray players, digital cameras and smartphones.

    The Strategy Behind Each of their Brands

    OPPO

    In 2004 that Duan founded OPPO Mobile Telecommunications Corp. Ltd. with CEO Tony Chen. The company got into the mobile phones market in the year 2008. In another 5 years it became the second most profitable company in China alongside other players like Huawei, ZTE, Xiaomi and Lenovo.

    Oppo first made its presence in 2014 in the Indian smartphone market with the release of its flagship device Oppo N1. With an overall market share of just 4%, Oppo needed a better marketing strategy to stay in the competition. Since then Oppo used various marketing strategies like celebrity marketing, retail marketing, sponsor marketing etc. to increase brand awareness.

    Oppo is also known for its retail strategy having opened more than 600 stores in shopping malls and plans to add 400 more stores by the end of 2020. Oppo has an international presence across 21 countries globally. Oppo has made its name as selfie expert technology and is ranked 4th for creating the best selfie experiences among the younger generations globally.

    They were also the first to feature an in-display front-facing camera, meaning you won’t be able to see the camera hidden under the display. Oppo’s success does not come from any complex marketing strategy but based on a customer-oriented strategy to provide a better customer experience.

    Oppo owns most of its supply chain and distribution networks. They have manufacturing units that produce all the devices and equipment. While companies like Samsung, Huawei etc. are focused on all segments from entry-level to high-end mobiles, Oppo has its offering on high-end specs with low prices.

    Share of Smartphone Users in India BBK Case study
    Share of Smartphone Users in India

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    VIVO

    Vivo was founded in the year 2009 by CEO Shen Wei. It was in 2011 that Vivo smartphones first appeared with the focus on ultra-slim factor and relying on celebrity endorsements to capitalize on the smartphone boom. Vivo’s core business lies in the mid-range smartphone section, however recently the brand had stepped into concept APEX and NEX ranges.

    Vivo NEX was the first truly bezel-less smartphone with a selfie pop-up camera. Vivo is also known for its Hi-Fi technology, which is short for high fidelity audio experience. They market themselves as a camera and music smartphone model. Vivo entered the Indian market in late 2014 with the world’s officially slimmest smartphone. Vivo was the first to introduce an in-display fingerprint scanner with its Chinese model Vivo X20 Plus UD. It also came up with the fastest charging technology called VOOC and super flash technology.

    Vivo has a very proactive advertising and marketing strategy. It uses medium such as print, television advertising and social media marketing to promote its products.

    For an example, Vivo had already replaced PepsiCo to become the official sponsor for Indian Premier League Season (IPL) in 2016. Vivo promotes its wide range of products by advertising on billboards using an extensive OOH (OutOfHome) campaign.

    Vivo Advertising Billboard
    Vivo Advertising Billboard

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    OnePlus

    OnePlus was founded in the year 2014 by Pete Lau and Carl Lei. OnePlus launched one smartphone every year, unlike any other smartphone brand who have unveiled 4 to 5 products every year. The chose to launch all their products exclusively through online marketplace Amazon and have opened thier stores in selected cities.

    It has made its mark in the premium smartphone category and its tie-ups with OTT platforms like Netflix have further increased the brand reputation. The brand slogan is “Never Settle” which became very popular among young generation. Users started to opt OnePlus phones which provided higher specifications and are cheaper compared to their premium end rivals such as Samsung and Apple.

    Netflix Oneplus tie-up
    Netflix OnePlus tie-up

    OnePlus is known for making viral waves with its invite-only system. OnePlus adopted influencer marketing to reach a variety of audience. It built an online platform for technology enthusiasts to discuss android app development related queries.

    OnePlus also has some amazing brand ambassadors such as Robert Downey Jr. and Amitabh Bachchan. It has made an aggressive campaign online to promote sales, which are usually booked within moments as the sales go live.

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    Realme

    Realme was founded in the year 2018 by former OPPO vice president Sky Li. Realme was introduced in the Indian market as a competition against another Chinese smartphone manufacturer Xiaomi which dominated the lower price segment. Realme adopted Xiaomi’s strategy and sold most of its phones through an online channel. It has also partnered with offline retail chains to expand its reach. Realme has adopted slogans like Dare to Leap, dare to buy, to promote purchase of their smartphone. They target young consumers through social media marketing campaigns and viral media campaigns.

    IQOO

    The latest smartphone from BBK electronics to enter the competitive Indian smartphone market is IQOO (pronounced I-koo). With the launch of premium smartphone IQOO 3, the phone comes with both 4G and its 5G variants. They are focused on providing an advanced smartphone to grow its small user base.

    Virat Kohli Brand ambassador of IQOO
    Virat Kohli Brand ambassador of IQOO

    IQOO partnered with Flipkart on the distribution end and endorsed by Indian cricketer Virat Kohli. Initially released through online stores they are planning on setting up offline stores, so that customers can get a hands-on experience of device functionality.

    FAQ

    Is Xiaomi owned by BBK?

    BBK does not own Xiaomi. BBK owns 5 smartphone brands that are Oppo, Vivo, Oneplus, Realme and iQOO.

    Who is the owner of BBK Electronics?

    Duan Yongping is the founder and owner of BBK Electronics.

    How much is BBK Electronics worth?

    BBK Electronics was estimated at $77 billion as of 2020.

    Is Nokia a Chinese company?

    Nokia is a Finnish multinational telecommunications, information technology, and consumer electronics company.

    Conclusion

    Owing to the well-established supply chain and distribution centers set up by Vivo and Oppo, these brands can enter the markets pretty easily. Whereas OnePlus has set its user base primarily in the North American, European and Indian Markets. As OnePlus is starting to cater to the mid-range segments with a device like “Nord”. Vivo and Oppo are entering the premium segment.

    Realme is proving itself as a leading competitor in the entry-level mobile segment challenging the likes of Xiaomi. Vivo’s IQOO brand is targeting premium segment with the introduction of 5G flagship smartphones in Indian markets.

    BBK electronics has reached this level of success by wisely adopting an age-old adage which states to don’t put all your eggs in one basket. Every brand under the parent company BBK electronics has its range of products towards each market segment, So if one fails, they can depend on the other to make a profit.

  • Philips: Aiming to improve lives

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

    Royal Philips is a leading health technology company focused on improving people’s health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions

    Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 81,000 employees with sales and services in more than 100 countries.

    Philips – Company Highlights

    Startup Name Koninklijke Philips N.V.
    Headquarters Amsterdam, Netherlands
    Industries Conglomerate
    Founders Gerard Philips, Anton Philips
    Founded 15 May 1891
    CEO Frans van Houten
    Areas served Worldwide
    Website www.philips.com

    Philips – About and How it works?
    Philips – Logo and it’s meaning
    Philips – Founder and History
    Philips – Mission
    Philips – Business Model
    Philips – Growth and Revenue
    Philips – Investments
    Philips – Competitors
    Philips – Challenges Faced
    Philips – Strengths
    Philips – Future Plans

    Philips – About and How it works?

    Koninklijke Philips N.V. (literally Royal Philips, commonly shortened to Philips, stylized in its logo as PHILIPS), a Dutch multinational conglomerate corporation that was founded in Eindhoven, is a technology company, which engages in the healthcare, lighting, and consumer well-being markets. Since 1997, it has been mostly headquartered in Amsterdam, though the Benelux headquarters is still in Eindhoven. Philips was formerly one of the largest electronics companies in the world, currently focused in the area of health technology, with other divisions being divested.

    It was founded in 1891 by Gerard Philips and his father Frederik, with their first products being light bulbs. It currently employs around 74,000 people across 100 countries. The company gained its royal honorary title in 1998 and dropped the “Electronics” in its name in 2013, due to its refocusing from consumer electronics to healthcare technology.

    Philips is organized into three main divisions: Personal Health (formerly Philips Consumer Electronics and Philips Domestic Appliances and Personal Care), Connected Care, and Diagnosis & Treatment (formerly Philips Medical Systems). The lighting division was spun off as a separate company, Signify N.V. (formerly Philips Lighting prior to 2018). The company started making electric shavers in 1939 under the Philishave brand, and post-war they developed the Compact Cassette format and co-developed the Compact Disc format with Sony , as well as numerous other technologies. As of 2012, Philips was the largest manufacturer of lighting in the world as measured by applicable revenues.

    Philips – Logo and it’s meaning

    Logo Evolution of Philips
    Logo Evolution of Philips

    The first time when the wavy lines and star spangles became part of the Philips logo, was around 1925. Two people claimed to be the author of the Philips logo: Kalff and Johan van der Ley. Kalff said that creating the wavy lines he was inspired by the idea of sound waves travelling through the air, while Johan van der Ley emphasized the stars, which, according to him, were inspired by electric lighting. The logo has been featuring blue since 2008, with minor shifts of the shade.

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    Philips – Founder and History

    The Philips Company was founded in 1891, by Gerard Philips and his father Frederik Philips.

    Founders of PHILIPS
    Founders of PHILIPS

    Frederik, a banker based in Zaltbommel, financed the purchase and setup of an empty factory building in Eindhoven, where the company started the production of carbon-filament lamps and other electro-technical products in 1892. This first factory has since been adapted and is used as a museum.

    In 1895, after a difficult first few years and near bankruptcy, the Philipses brought in Anton, Gerard’s younger brother by sixteen years. Though he had earned a degree in engineering, Anton started work as a sales representative. With Anton’s arrival, the family business began to expand rapidly, resulting in the founding of Philips Metaalgloeilampfabriek N.V. (Philips Metal Filament Lamp Factory Ltd.) in Eindhoven in 1908, followed in 1912, by the foundation of Philips Gloeilampenfabrieken N.V. (Philips Light bulb Factories Ltd.). After Gerard and Anton Philips changed their family business by founding the Philips corporation, they laid the foundations for the later electronics multinational.

    In the 1920s, the company started to manufacture other products, such as vacuum tubes. In 1939, they introduced their electric razor, the Philishave (marketed in the US using the Norelco brand name). The “Chapel” is a radio with built-in loudspeaker, which was designed during the early 1930s.

    Philips – Mission

    Philip’s mission statement says, “At Philips, we are striving to make the world healthier and more sustainable through innovation, with the goal of improving the lives of 3 billion people a year by 2030.” They are teaming up with hospital and health systems to understand their needs, provide integrated solutions, and engage in multi-year cooperation to drive improvements in terms of patient outcomes, quality of care delivery and cost productivity.

    Philips – Business Model

    Philips’s operations are organised into three reportable business segments:

    • Healthcare, comprising the Company’s production and sale of healthcare devices and solutions, including imaging systems, healthcare informatics, and patient care and monitoring products;
    • Consumer Lifestyle, comprising the Company’s production and sale of domestic appliances, personal care, and health and wellness products; and
    • Lighting, comprising the Company’s sale of light sources and electronics – including LED and fluorescent lighting products, consumer luminaries – including lifestyle and decorative lighting solutions, and professional lighting – including road lighting and office lighting.

    The Company has introduced a slightly new structure for 2016 that reflects its increased focus on healthcare. Going forward, the Company’s healthcare business will be divided into three separate operating segments: Personal Health, Diagnosis and Treatment, and Connected Care and Health Informatics.

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    Philips – Growth and Revenue

    Philips’s revenue has decreased by 26.3% in last 4 years.

    Year Annual Revenue Percentage change
    2020 $20.499B -15.51%
    2019 $21.82B +1.96%
    2018 $21.401B +6.49%
    2017 $20.097B -25.92%

    Philips – Investments

    Philips Healthcare has made 3 investments. Their most recent investment was on Mar 27, 2019, when Xealth raised $11M.

    Date Stage Amount Organization Name
    Mar 27, 2019 Series A $11M Xealth
    Sep 27, 2018 Non-Equity Assistance – Linkingmed
    Apr 11, 2017 Series C $36M ALung Technologies

    Philips – Competitors

    Philips competitors include GE Healthcare, Siemens, Samsung, LG Electronics and Fitbit. Philips’s revenue is the ranked lowest among it’s top 10 competitors. The top 10 competitors average 34.9B. Over the last three quarters, Philips‘s revenue has decreased by 26.3%.

    Philips – Challenges Faced

    • Highly competitive business environment
    • Counterfeit goods – a major threat to manufacturers of branded electronics
    • Environmental and other government regulations
    • Exchange rate fluctuations
    • Availability of cheaper technology in local markets

    Philips – Strengths

    • Subsidiaries in more than 100 countries with more than 120,000 employees
    • Operates around 110+ production facilities
    • Has a very strong   R&D portfolio, with 7 active R&D centers across  the globe
    • Market leadership and strong brand equity –  market   leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions with consistent growth rate in emerging market
    • Aligning operations with market conditions to increase productivity –  Philips focused on de-layering   its management structure to increase speed of execution and lower operating   costs, resulted in improvement in efficiency
    • Customer loyalty is high for consumer electronics made by Phillips

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    Philips – Future Plans

    The ‘Hospital of the Future‘ vision looks at building smarter, safer and sustainable hospitals which will be driven by design thinking and smart technology. Philips is aiming to improve the lives of 3 billion people a year by 2030.

    Philips, which is celebrating its 90th anniversary in India, has started manufacturing of MRI consoles, Magnetic Resonance Imaging etc. It is also exporting MRI components to various markets.Dutch health-tech and consumer electronics company Philips said it will invest Rs 250-300 crore to boost its manufacturing and R&D facilities in India. The company also intends to hire 1,000 people over the next two to three years, adding to its existing workforce of over 6,000 people.

    “Even as we work through the current crisis, we are focused on the future and are investing towards it,” Daniel Mazon, vice chairman and managing director for Indian subcontinent at Philips India

    The company also sees demand increasing for its connected care solutions amid the Covid-19 pandemic and will work towards more public-private-partnerships (PPP) in this space.

  • Best Electrical Business Ideas: Profitable And Easy

    The growth in the electrical consumption is increasing globally every day. The most important factor for the same is the increasing use of technology. It is a very suitable time if you are thinking about electrical business ideas. If you belong to the electrical field, then it would be a very lucrative idea to start with electrical business ideas. However, if you are not from that field, then also you can start with a proper strategy and guideline.

    So, let’s jump into the article and find out what are the most reliable and profitable electrical business ideas.

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    Battery Manufacturing

    If you are thinking to start your own production business from all electrical business ideas, then battery manufacturing can be considered. It might not be a very easy job, but it is also not a rocket science. You need to have a few guidance and training which is available almost everywhere.

    electrical business opportunities_startuptalky
    Battery Manufacturing

    However, you need a few license and documents to start your battery producing business. Get a NOC  from local pollution monitoring authorities to run your business.

    Mobile And Computer Repairing Business

    This one is one of the best electrical business ideas because it is very profitable. Every household out there posses at least one smartphone or a laptop, or at least a desktop. So it is obvious for people to flock into your shop to repair their electronic handles.

    Electronic Appliances

    There are two ways you can operate this as one of the versatile electrical business ideas. First, you can start selling the electrical appliances in your shop, both physical and virtual. In this option, you have to purchase from and producer and sell it to your customers.

    small electrical business ideas in india_startuptalky
    Electrical Appliances that are used daily

    Secondly, you can start a manufacturing unit. You need to have raw materials assembled so you can start making electronic products. Both-way, it is going to be profitable because there is a rise in the demand in electrical appliances.

    Air Compressors

    Air compressors are utilized in a lot of places. Starting from smaller gas stations to the bigger manufacturing plants. The air compressor is almost found in all of the heavy machines. Air compressors are basically used to convert power into potential energy stored in pressurized air.

    Therefore, if you are thinking this option to opt among all the electrical business ideas, then start from the scratch. Get enough knowledge and attend raining and workshop programs that are available in the internet.

    Green Consulting

    Keeping in mind the damages happening to the environment, green consulting have started. The journey with green-oriented operations is not a new thing. Since last few years, the idea of manufacturing eco-friendly way of improving energy efficiency.

    profit in electrical shop in india_startuptalky
    Choose eco-freindly ways of electrical operations

    For starting your green consulting there are a few things you need to possess. The most important is a combination of electrical engineering license as well as Leadership in Energy and Environmental Design certification (LEED).

    Security Gadgets

    If you intend to open a manufacturing unit, then you might need high professionals to work under you. Also, you will need huge machinery. A lot of investment to start your business with.

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    It is recommended to open up a store to sell security products. You can get the franchise of an existing brand. Otherwise, opt for many branded products and assemble them in your shop. With the growing crime and nuisance activities, the demand for security cameras and other gadgets are high in demand. They are required in institutions like hospital, school, offices, residents, complex, restaurants, hotels etc.

    Repair and Maintenance Services

    Maybe it is about any institution or a residential home, everywhere it is electrical appliances are being used for almost every work. Home repairing services also include the repair and maintenance of electronic goods. So thinking about this as one of the best electrical business ideas can also be pretty profitable.

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    E-waste Management

    As the life span of electronic gadgets reduces, we tend to buy more gadgets. However, there is no place to dump waste products. Also, throwing them out here and there can also be hazardous to the health. So, to make it more environment friendly, e-waste became a thing.

    electrical business opportunities_startuptalky
    E-waste Management

    E-wastes are essentially the discarded, surplus, obsolete, broken, electrical or electronic devices. The global e-waste management market has its net value worth $17 billion in 2015. By the end of 2020, it is expected to reach up to $49.9 billion. So, you know now, not a bad one among the electrical business ideas.

    Blogging belongs to the universe. You just have to have enough knowledge about your preferred field. For the time being, let’s think you are a master in electronics and you want to share your views of the world. There is a lot to talk about in your blog, or even if you are doing a vlog.

    Recently, the most popular thing that has come up is reviews about gadgets. t will be a wonderful opportunity if you know all the nooks and croons of the gadgets that are getting released in the market.

    how to grow a small electrical business_startuptalky
    Growth in Electrical Market

    In case you are doing a collaboration, you will not even need to buy the gadget. But you need to master the art of market your product to the audience. This might also make you an influencer. So, you have to agree, this is one of the best electrical business ideas.

    Electrical Training

    This is another option besides blogging and vlogging. You can start teaching others professionally. If you have a degree you can start your private training courses and charge people accordingly. The interested ones will obviously pay you for the training session.

    Electrical business ideas

    You need to provide a certificate for every course. Also, you need to make sure that the certificate holds a value. So you can collaborate with institutions that offer valid certificates that can be used for making an impression.

    Electrical business ideas need to have a good start with in-depth research. The entire world can be your target audience. But you need to be very specific about why people would purchase from you. Get all the basics cleared about electronics so you can convince your buyers. Customer satisfaction should be your priority. So, these few electrical business ideas will surely be profitable if applied in a proper way.

  • Jio’s Journey Towards Dominating The Data Market

    Reliance Jio has fulfilled its dream of taking over the data market and the 4G space in India. From December 2015 up to 2020 the marketing and growth strategies employed by Jio have enabled this company to emerge with giant like proportions and establish itself as a leader in Indian telecom space. Bharti Airtel was next with a share of 24%, while Vodafone Idea was third. State-owned BSNL commanded more than half of the market share in wired internet subscribers.

    Reliance Jio now leads the chart by grabbing 52.3 per cent of the overall data market share, followed by Bharti Airtel at 23.6 per cent share in the quarter ended March 2020. According to the Telecom Regulatory Authority of India (Trai) the number of internet subscribers in India increased to over 743 million at the end of March 2020, with a growth rate of 3.4 per cent on a sequential quarter basis. Around 97% of the subscribers use mobile devices for internet access. Vodafone Idea held the third position as its internet subscriber market share at 18.7 per cent for the period in reference.

    Which is why the number of wireless internet subscribers stood at 720.7 million, while the wired internet subscribers were 22.4 million. Internet access with a minimum capacity of 512 kilobits per second or more is defined as broadband connectivity. The top five service areas in terms of internet subscriptions wired and wireless were Maharashtra (63.01 million), Andhra Pradesh including Telangana (58.65 million), UP (East) (54.60 million), Tamil Nadu (51.64 million).

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    Jio’s journey to success

    Reliance Jio Infocomm Limited was founded in 2007. In 2010, it acquired 95% of Infotel Broadband Services Limited. In 2010, it acquired 95% of Infotel Broadband Services Limited. This lesser known company was attractive because of the service and opportunities it offered in exchange for the price tag. The IBSL is what allows Reliance to develop its 4G network all over the country.

    Reliance Jio first product was the Lyf smartphone which was launched in the India markets in 2015, which did not generate sufficient demand. In 2016, brought Reliance Industries Limited 42 annual general meetings. It was here that Ambani first announced his plans to take over the 4G space in India, with the launch of Reliance Jio.

    number of subscribers increasing from 2017 to 2019
    number of subscribers increasing from 2017 to 2019 

    Jio takes over the market

    The reason for jio’s successful marketing strategy is that it is unilateral and is the same service offered for free. The initial scheme that accompanies the launch off jio was free services till March 2017. With this scheme each individual was given access to free SIM cards with free voice calling and free 4G data to fulfil their browsing skills.

    Reliance Jio reached its goal of 100 million subscribers in February 2017 just within 170 days and by June 2017 it had 200 million subscribers, thus making a record for the fastest growth of users. As of December 2019, Jio is the third largest telecom service provider in the world and has a network of close to 400 million subscribers.

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    The rise and rise of Jio

    Before jio, people paid between Rs.200 and Rs. 500 for limited 3G mobile data. In jio case the company had an advantage as the product was free when it was introduced, it disrupted the entire telecom space in India and brought high speed data to the general public. People were now streaming movies watching videos, video calling all from their mobile phones.

    jio's profit in 2019 and 2020
    jio’s profit in 2019 and 2020

    The six month free period served as an opportunity for the company to test put their product and the use the data from that period to optimize its network to the need of the consumers. When dual sim became popular, it became easy for individuals to retain their Jio SIM cards and use them for mobile data while also keeping their original phone numbers for other purposes. The company brought out new products like 4G enabled phones, broadband services, TV services and many others.

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    Increasing Numbers

    Generating a demand and created a customer base is the first step. Then comes the task of long term retention. For Jio the referral stage was particularly important as other telecom service providers had not caught up with a 4G network of that magnitude. With coverage in all 22 telecom circles, Jio became the largest mobile network operator in India by 2019.

    In the financial year 2019 -2020 profits have increased by 88%. Revenue increased by approximately 40% and EBIT rose by 64%. In fact, during the corona virus pandemic, Jio reported that data usage on their network increased by over 50%. Jio has also launched in September 2016, along with the Jio music app, video streaming app and other accompaniments.

    The JioPhone was launched in August 2017, with subsequent models being introduced in 2018 and in 2020. These phones are created to answer the complementary demand for affordable 4G compatible phones, generated by the original demand for 4G data. For the manufacturer of these phones, Jio has partnered with Google. Apart from this the company has also launched Wi-Fi routers and other electronics.