- Feb 19, 2012
- Reaction score
The answer is that the big fish have stopped all the smaller companies from getting their chips. The big customers agreed to price changes and those orders from the largest customers are getting filled first. If a customer accounts for 30% or more of the business, they will get served first and inventory orders will be allocated from the smaller company to them.
If the company that represents 3% of my sales is unhappy and eventually moves to another supplier - I can live with that. But if the company that represents 30% of my sales moves their business elsewhere - I am pretty close to being out of business.
It did not matter when you ordered if you represent a small order. All those orders were bumped to continue the supply to the best customers.
Its not difficult to understand that with limited availability the MFGs and Suppliers of the chips are both maximizing their profits and taking care of their core group of customers - there is nothing the small companies can do.
It is also likely that Radenso is competing with automakers for chips, since both of these products are using the older generation processes. Governments are very much involved in this now, and automakers will get priority because of the immense downstream economic benefits from automobile production vs production of consumer electronics.