Product lifecycles are becoming noticeably shorter, especially in the electronics industry. As innovation accelerates, new products are being introduced more frequently, adding pressure to component production and pushing older ones into obsolescence at an unprecedented rate. But what exactly is a component's lifecycle, and why does its shortening matter?
50% of annual company revenues across a variety of industries comes from new products that have been released within the last three years. This already short lifespan is predicted to further reduce to two years in the near future.
In the electronics industry, a product’s lifecycle depends on the components inside. Amidst uncertainty within the sector, due to issues such as geopolitical tensions or natural disasters, manufacturing has become more difficult and strenuous. Companies, therefore, are rivalling for smaller opportunity gaps within the market and facing more competition.
1. The first stage is Introduction.
2. Next is Growth.
3. It further advances into Maturity.
4. And ends its life in the Decline phase.
The introduction phase begins as the product enters that area. They further develop into the growth stage, eventually reaching pique interest and demand at the maturity stage. During this time, a newer, more advanced product may be manufactured and released onto the market, thus beginning its lifecycle, taking demand and interest from pre-existing options, leaving the older product to advance into their decline stage. From here, the component will enter its EOL (End of Life) stage and eventually become obsolete.
Competitors, high market saturation and demand are causing a push towards quicker industry advancements. A business will not continue to invest money and resources in a component which is no longer profitable or as desirable as another. Therefore, product manufacturers may halt production and cashflow for these lines, leaving component manufacturers without the parts they need, struggling to source alternates and lacking funds to redesign their processes.
One of the most striking effects of shortened component lifecycles is instant obsolescence. The norm would be to travel through the component lifecycle until an EOL (end-of-life) or LTB (last-time-buy) notice is issued, however, these components are made instantly obsolete, leaving OEMs scrambling for solutions.
Further problems that can be caused include production delays, design changes to comply with different components or halted output if suppliers are struggling to source alternate parts. Not only will these parts be difficult to find but they also may have increased prices due to high demand. This adds pressure on distributors and their supply chains to try to keep up with the changing industry landscape.
Cyclops Group CEO David Yodaiken states; ‘In particularly turbulent times, Cyclops Electronics is a fantastic partner to have to assist with supply chain management, procurement and everything in between. With a technical team supplying alternate parts tested to make sure they comply with your fit, form and function, Cyclops Electronics strives to keep your business moving when it matters most.’
A global network, vast inventory, and a proven ability to source hard-to-find and obsolete components allows Cyclops Electronics to offer tailored solutions that help our partners stay ahead in an evolving industry.
From methods in alternate sourcing, scheduled ordering and shortage mitigation, Cyclops can maintain your supply chain, allowing you to meet demands and keep production running smoothly.
Get in touch with Cyclops Electronics today, your partner in efficiency and progress.
