Nokia immediatly terminated all outsourced manufacturing, plus other outsourced functions, something appr. 10-18%, noting something like "we outsource to adjust for the variations in markets".
Additionally Nokia runs a much leaner, meaner and especially much more efficient planning, logistics, manufacturing and distribution machine than all those Foxcons and Jabils, so additionally the margins will increase, unnecessary wasteful costs saved.
It seems these advanced economics sub-prime analysts never really understood these (basic) aspects of smart outsourcing.
That is, they are trained in outsourcing just because one cannot oneself do it efficiently.
Well, outsourcing is also smart if a company knows it is of no use to invest in its future and especially when two-three of them decide to outsource together. |
