Stabilisation in Q2 for top EMS vendors
The global electronics contract manufacturing business showed signs of stabilisation in the second quarter with the top players experiencing a collective return to growth, according to market analysist iSuppi.
The report was based on a review of second quarter sales data and revealed the top 10 EMS providers achieved revenue growth of 1.6% compared to the first quarter. According to iSuppli, this represents a dramatic swing from the 25% sequential revenue contraction in the first quarter.
The top 10 ODMs performed better with second quarter revenue rising by 12% compared to the first quarter – compared with a 14% sequential decline in the first quarter.
Despite the positive signs, iSuppli warns that it's too early to celebrate an electronics manufacturing recover, as factors such as the global recession, OEMs taking back manufacturing from their outsourcing providers and overcapacity pressurising margins continue to cloud the outlook.
