June 20, 2013

Converge in the Telecommunications Industry

In a previous blog post, we discussed what it takes to provide services to some of the largest electronics industries. One of the larger industries we mentioned was telecommunications, which continues to be one of the fastest-growing industries in the world. This market is ever-changing and innovative, with consumers driving demand by insisting on better services and added features, especially in the mobile/tablets markets. As a result, technology innovators need to stay ahead of the demand curve and their competitors if they plan to stay in business.

If we take a look at the telecommunications industry, we see that it is typically viewed as being split up into two sectors: services and equipment. In 2012, according to several different industry research companies, revenue from the equipment sector (which refers to the manufacturers and technology innovators) reached close to $2 trillion, and the services sector (online platforms) revenue was supposedly just under $1.5 trillion.

Wow! That is certainly impressive.

However, this growing industry has had its growing pains along the way, no doubt. For example, in 2011, the overall global economic downturn – or, as many have called it, the “recession” – resulted in manufacturers having to slow down production and cut costs in order to protect their profit margins. This also had a trickle-down effect on the distributors supplying parts to these manufacturers.

This economic downturn turned consumers into smarter and more frugal shoppers. Retailers had no choice but to respond with more sales, rebates, and free introductory services/products to secure revenue and inventory.

Despite the economy, the demand for these electronics products (HD TVs, smartphones, and tablets) remained considerably high, although it certainly was not increasing at the exponential rates that we had seen in previous years. Consumers began to be much more cautious when deciding on whether to use disposable income for electronics products.

Global economic uncertainty is still prevalent, but Converge is no newcomer to the telecommunications industry or to the challenges faced by those in the supply chain.

Converge has been supplying components for the latest products for more than 30 years – meeting the demands of this evolving industry and manufacturers’ design requirements during the most critical times. We know that not having the right parts at the right time can be detrimental to manufacturers’ production and their bottom lines.

We specialize in procuring electronic components, whether they are hard-to-find, obsolete, last-time buys (LTBs), or end-of-life (EOL). We also provide surplus remarketing solutions, value-added services and deliver quality components guaranteed through our multi-point inspection process. No matter what your telecommunications and data communications needs include, you can depend on Converge.

For more information on the industries we provide solutions for, visit our website or contact us at info@converge.com.