Latest news with #electronics
Forbes
7 hours ago
- Business
- Forbes
How Tariffs Are Testing Supply Chain Resilience Beyond Pandemic Levels
Steve Flagg is the CEO and founder of Supplyframe. The ongoing tariff negotiations have created a faster-moving, potentially more uncertain environment for electronics and other supply chains than the pandemic. New Commodity IQ data from my company, Supplyframe, helps tell the story. The Commodity IQ Lead Time Index reached 166.6 in April 2025—the highest reading in the index's history. That's more severe than a similar increase at the end of 2021, nine months after Covid-19 was declared a pandemic. In December 2019, the Lead Time Index score was below the baseline (100) before it began trending upward, eventually hitting 146.7 in January 2022 – the record high before this April. With lead times surging faster than at the beginning of the pandemic, low electronic component stockpiles are contributing to a drop in the Commodity IQ Inventory Index. This suggests any rise in demand will ripple through lead times, and longer lead times and product availability issues can create the potential for increased prices. Early in 2025, many original equipment manufacturers (OEMs) and retailers worked to get ahead of such challenges by forward-buying critical inventory. Some diversified away from China to minimize tariff exposure. But as they consume that inventory, these companies may be starting to hit the limits of their ability to protect themselves and their customers from the new tariffs. Businesses and consumers will feel the impact at varying times. Five months after the Commodity IQ Inventory Index in 2021 registered what at the time were record lows, the Commodity IQ Price Index increased 6.5% for Q4 2021, climbed another 14.1% in Q1 2022 and inflated electronics commodities pricing through the remainder of Covid-19. Today, price spikes are not yet widely visible to consumers, but earnings reports from companies like Best Buy highlight the scramble. The retailer missed quarterly revenue targets (registration required) and downgraded its revenue expectations despite diversifying its supply base to rely less on China, which now accounts for 30% to 35% of its merchandise, down from 55%. While it seems the retailer is doing everything possible to avoid passing on higher costs to customers, these types of practices may not be sustainable. An April 2025 Consumer Technology Association (CTA) report estimates the tariffs could raise the prices of popular consumer technology products by 31% to 69%. The impact of tariff-driven changes on manufacturers that rely on electronics components will depend on each industry's production volume. Industries with lower volumes and higher product mixes may have more time to buffer their inventory. The automotive sector, which is making production changes due to a pullback in EV demand and the move to hybrid, may see shifting exposure to the latest high-end electronics. But this sector will feel the pain, with tier-one suppliers experiencing the biggest squeeze. Average margins in tier-one automotive are in the 6% to 8% range, so these businesses don't have much room to absorb cost increases, as will become more visible in third and fourth quarter financial reports. The tariffs could also directly impact the capital costs of hyperscale computing companies building new AI data centers. Hyperscalers may be able to absorb price increases, but tariff uncertainty and higher costs could delay investments. What happens following the 90-day pause remains a big question. Meanwhile, it's still unclear what will happen after the 90-day pause. As of writing, minimal tariffs for China are still up to 35% when including additional duties, retaliatory actions or new layers of tariffs. With average profit margins for most electronic component manufacturers around 3.49%, the tariff cost impacts already eclipse what these suppliers can absorb. Any increase or other change to key final assembly manufacturing locations in countries like Mexico, Canada and Southwest Asia creates a greater risk of price increases. Following the 90-day moratorium, major original equipment manufacturers (OEMs) in multiple end markets that rely on these suppliers could see product shortages and price increases this summer. New Semiconductor Industry Association data estimates that a $1 increase in a semiconductor chip could lead to a $3 increase in the sales price of the product in which it is integrated. China talks and court rulings add uncertainty. U.S.-China tariff negotiations are ongoing, and if the U.S. International Trade Court's ruling minimizes the administration's ability to renegotiate tariff levels, it could swing things dramatically. Whiplash over semiconductor-specific tariffs adds to the uncertainty. Semiconductor tariffs were included initially, then pulled. Apple and mobile phones were also excluded in light of Apple 'hustling to onshore their manufacturing.' However, despite the CHIPS Act and new capacity coming online, diversification of manufacturing and sources of supply into the U.S. will take more time, likely years. Therefore, companies that rely on electronic components remain highly sensitive to tariff shifts. The Bottom Line What we're witnessing today in electronics is potentially faster and broader in impact than what unfolded during the pandemic. That means businesses will need to make tougher tradeoffs between profitability, demand and risk-taking in terms of inbound supply chains. To do that: • Be proactive as opposed to reactive. You can take decisive action to mitigate risk via a multisourcing strategy by considering factors like country of origin and de-risking product design using external intelligence. • Employ near real-time market intelligence. High degrees of uncertainty require more intelligent scenario modeling to understand and act on emerging trends quickly. • Partner with suppliers to manage risk. Build clauses into supplier contracts that allocate responsibility for tariff-related cost increases between both parties. • Relocate production closer to home. Move manufacturing operations to nearby or domestic locations to minimize vulnerability to trade disruptions. • Shift left. Conduct detailed risk analysis of your product innovation portfolio and make tradeoff decisions, including qualifying alternate sources of supply, parts and cost to design in resilience where the cost of change is lowest in the product lifecycle. Most importantly, understand that it will likely only get more disruptive. What was true during the pandemic is true again. Build resilience to evolving market dynamics using analysis and tradeoffs, and shift left early. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Zawya
8 hours ago
- Business
- Zawya
Reliance buys home appliances maker Kelvinator from Sweden's Electrolux
Reliance Industries said on Friday its retail arm has bought the Kelvinator brand in India from Sweden's Electrolux, as the Mukesh Ambani-led group deepens its presence in the fast-growing consumer durables market. Reliance Retail has been expanding its private-label portfolio and growing its footprint in home electronics and appliances, a segment boosted by rising incomes, urbanisation, and mounting competition. It also operates the Reliance Digital stores, which sell everything from smartphones and laptops to washing machines and refrigerators. The company has been selling Kelvinator-branded refrigerators, air conditioners and washing machines since 2019 under a licensing pact with Electrolux, primarily through smaller appliance retailers in general trade. Kelvinator rose to prominence in the 1970s and 80s in India as its refrigerators, marketed under the tagline "the coolest one," became a symbol of aspirational living for the country's middle class. However, the brand lost ground after liberalisation in the 1990s, when global competitors flooded the market and consumer preferences began to shift. While the companies did not disclose financial details of the deal, Electrolux said in its quarterly earnings update on Friday that it booked a gain of 180 million Swedish crowns ($18.5 million) from the divestment of the brand. As of June 2024, India's consumer goods market was the fastest-growing among major economies and could nearly double to 3 trillion rupees ($34.8 billion) by 2029, according to an EY report. Reuters reported earlier this month that Reliance Retail is unlikely to launch an initial public offering before 2027 or 2028. In November, sources told the news agency that the company plans to resolve operational challenges before going public. ($1 = 9.7064 Swedish crowns) ($1 = 86.1800 Indian rupees)
CNA
14 hours ago
- Business
- CNA
How the world's largest electronics market in Shenzhen is feeling the heat from China's power bank crackdown
SHENZHEN: 'It's a headache, this came all too sudden,' said a power bank vendor at Shenzhen's Huaqiangbei, the beating heart of China's electronics trade. The shop owner, who wanted to be known as Mei, is stuck with more than 100 unsold portable chargers, even after sending hundreds back to the factory. Another vendor told CNA she is staring at thousands of yuan in stranded inventory, as store shelves fill with products no one dares to buy - or fly with. The sprawling bazaar, billed as the world's largest electronics market, has been thrown into disarray amid wider upheaval in China's power bank industry. A string of battery-related safety scares has triggered mass recalls, a sweeping ban on uncertified devices aboard domestic flights and intense public scrutiny. Retailers are feeling the heat as authorities ramp up enforcement to ensure only compliant portable chargers are sold. Consumers have also found themselves in the line of fire, grappling with confusion over recall notices and difficulties securing refunds and exchanges. Some users were even told to destroy their portable chargers by soaking them in salt water to qualify for a refund - an instruction that swiftly went viral, prompting a flood of user-submitted photos, along with ridicule and frustration. But analysts say there may be a silver lining amid the turmoil - the sweeping crackdown could ultimately raise industry standards and power through long-overdue improvements in safety and compliance. CHARGING TOWARDS TIGHTER RULES But first - how did it all come to this? The latest trigger came on Jun 28, when China enacted a ban on uncertified power banks aboard domestic flights, citing fire risks. In August 2023, Chinese authorities mandated that power banks and lithium-ion batteries would be subject to China Compulsory Certification (CCC) requirements. The CCC mark is a mandatory national safety and quality certification. From August 2024, devices without a valid certificate have been banned from being manufactured, sold, imported, or used commercially. Enforcement, however, has been uneven. But now, passengers are being barred from carrying power banks that lack the official CCC mark, the country's civil aviation regulator stated in a notice issued just a day before the rule came into effect. Portable chargers with faded or illegible CCC labels, or those subject to product recalls, are also prohibited, according to the notice by the Civil Aviation Administration of China (CAAC). CAAC pointed to a string of mid-flight fire incidents linked to power banks, as well as mass recalls by major brands, as contributing factors. Two leading Chinese electronics manufacturers, Anker and Romoss, recently recalled more than 1.2 million portable chargers over battery-related fire risks. Since then, thousands of power banks have reportedly been confiscated at airports across the country. At Urumqi Diwopu International Airport in Xinjiang alone, around 3,000 devices were being seized daily, according to a Jun 28 report by Xiamen Daily. Beyond this, authorities have ramped up on-the-ground checks, tightening enforcement at electronics markets to ensure only compliant power banks make it to store shelves. 'There have been undercover checks these past two weeks. We're all scared,' a vendor at Huaqiangbei who wanted to be known as Ling told CNA. 'If you get caught, there's a fine,' added Ling, whose store also sells mini fans and hairdryers alongside power banks. Under China's Product Quality Law, sellers can face fines of up to three times the value of uncertified goods. That means a power bank priced at 100 yuan (US$14), for example, could result in a maximum penalty of 300 yuan per unit. The shift is visibly playing out at Huaqiangbei. Power banks that were once openly flaunted across shopfronts and tabletops have become harder to spot. CNA observed that many are now tucked away in drawers or stacked in boxes beneath counters, kept out of sight as sellers weigh the risk of being penalised. 'People here in Huaqiangbei are smart. If you don't adapt quickly, you'll be eliminated,' said Ling. BALANCING COMPLIANCE AND CLEARANCE Amid the heightened scrutiny, some vendors have decided to focus on hawking other wares for the time being. One shop owner who declined to be named told CNA she had returned more than 100 non-compliant power banks to the manufacturer and shifted to selling other products like portable fans and hairdryers. 'The manufacturer took it back and said it would return with the CCC certification,' the shop owner said. She explained that since the domestic flight ban was announced, some factories have been retrieving stock from vendors and sending it back a week or two later with CCC labels affixed. But many vendors are choosing to stay the course and sell power banks despite the heightened scrutiny and regulatory risks, even as not all the devices on offer appear to meet official standards. At several shops CNA visited, vendors openly offered CCC-certified power banks but were also willing to discreetly sell uncertified ones. When asked directly, one shopkeeper pointed to a stack, saying: 'If you are not taking flights, you get these. If you are, take this other batch.' The uncertified power banks were selling for around 60 yuan, roughly 30 yuan less than certified models. Other shops displayed portable chargers marked as flight-safe, but asked this reporter to delete photos of the devices after they were taken. Similar scenes have played out across China. At Beijing's Kemao Electronic City, the capital's largest electronics market, vendors kept a low profile and discouraged photo-taking even as product packaging displayed signs claiming 'with national CCC certificate, (you are) safe and secure'. In some cases, even the authenticity of the CCC mark on power banks being sold has come into question. On this reporter's visit to Huaqiangbei, a vendor who gave her name as Zhan revealed a separate box of power banks affixed with CCC labels. She acknowledged that the devices were not truly certified – the manufacturer had simply printed the labels to make them appear compliant. 'The factory took them back to print the CCC labels and only sent them back today for packing. But we don't want to lie to customers, so we just tell them honestly,' she said. 'For international flights, it's okay because we've been selling these for years,' Zhan remarked. 'It's a waste to throw them away,' she added. 'We are making only a 2 yuan profit per portable charger sold. We want to clear them as soon as possible.' Zhan claimed that after the existing stock was cleared, she would no longer sell power banks without the CCC mark. But even the CCC mark itself has become a source of confusion. In the rush to comply, fake 3C stickers have been circulating online, with some listed for as little as 5 yuan each. Checks by CNA found that the search term '3C sticker' has been blocked on major e-commerce platforms, including Taobao, and secondhand platform Xianyu. Under Chinese laws, legitimate CCC-certified power banks must display key identifiers: the manufacturer's name and address, rated capacity, input/output specifications, the official CCC mark with factory code, and clear safety warnings. These markings help distinguish certified products from counterfeits. Some power banks sold at Huaqiangbei and seen by CNA carried CCC labels, but several appeared dubious—markings were inconsistent, airplane logos were printed in different ink, and some lacked key identifiers required by regulations. Some power banks sold at Huaqiangbei and seen by CNA carried dubious-looking CCC labels, with aeroplane logos printed in a different ink. Others were missing key identifiers required by regulations. Another Huaqiangbei shopkeeper, Lei, claimed that not all power bank manufacturers are going through the process of getting all their products CCC-certified. 'It cost them 20,000 yuan to get the certification. It will increase the cost price,' Lei said. As an example, he held up a 10,000mAh power bank affixed with the CCC mark. 'It was priced at 50 yuan, now it's 80 to 90 yuan,' he said. Obtaining the CCC mark takes time, effort and money, industry players point out. Wang Shuhai, the general manager of Nohon, a Hong Kong-headquartered consumer electronics firm with 18 years of experience in replacement batteries, told CNA that CCC certification for a single product can cost around 30,000 yuan to 40,000 yuan. 'That includes testing fees, factory audits and certificate maintenance … on top of that, the battery cells themselves require separate aviation safety certification,' he said. 'The whole process takes about three months.' CONSUMERS CAUGHT IN THE CRACKDOWN It's not just electronics vendors feeling the heat - consumers are also caught in the fallout from China's crackdown on uncertified power banks. A content creator from Shandong, who goes by the username LoseHeart, said he relies on two portable chargers to support his video work. One of them, a Remax-branded device bought from an official Taobao store in March last year, is no longer allowed. 'My wallet's already thin,' he said. 'People's incomes and budgets are tight. Forcing us to spend more just builds resentment.' Still, he said he would avoid pricier models moving forward. 'I'll keep it within 100 yuan.' David Liu, 27, a Taiwanese student in Shanghai, told CNA that both of his portable chargers - an Asus and a Xiaomi - only carry the CE mark, which is valid in the European market but not in China. He was travelling in Guangzhou when the new aviation policy took effect and tried mailing the devices back to Shanghai. 'Before June, I could send the portable charger anywhere in China, so I thought this would work,' Liu said. But he was unsuccessful as logistics firms had already begun refusing to ship non-CCC-certified devices amid the latest crackdown. 'There wasn't enough buffer time for the policy to take place, and they also (enforced the ban on) shipping companies from handling uncertified power banks, so a lot of customers had to give up on their portable chargers,' Liu said. At the same time, owners of power banks under recall orders have also run into issues getting refunds on their devices or exchanging them for a certified replacement. Chinese name brands like Anker and Romoss have announced product recalls. Anker has recalled more than 712,000 units across seven models, while Romoss recently pulled nearly half a million power banks spanning three models - both citing battery defects that pose fire risks. In the initial recall notice for Anker's A1681 power bank issued in late June, customers were told to return the devices to a designated warehouse in Dongguan, Guangdong. But many soon reported that major courier companies such as SF Express, JD Logistics, China Post and YTO Express refused to ship the items due to safety concerns and tightened regulations. Ten days later, Anker issued an update. Users were instead instructed to soak the devices in salt water for 24 hours in a well-ventilated area, then dispose of them in a hazardous waste bin. To qualify for a refund, they had to submit a video of the process. 'This is to completely drain the internal battery and reduce potential safety risks before disposal,' Anker stated in a message sent to customers. The instruction quickly went viral, prompting users to flood Chinese social media with photos and videos of themselves carrying out the act. 'They made me soak the power bank and upload proof, then said it'll take four to eight weeks to send a new one. Every day it's a different story,' one user wrote on the social media platform Xiaohongshu. 'It breaks my heart to see (my power bank) go. It works perfectly, doesn't overheat, looks great and charges fast,' another commented. POWERING TOWARDS BETTER STANDARDS Even as retailers and consumers navigate the new landscape, analysts say China's power bank industry is facing a long-overdue reckoning - one that's exposing cracks in safety standards, compliance practices and supply chain integrity. In both the Anker and Romoss recalls, the companies pointed to faulty battery cells as the root cause. The defective cells came from a shared supplier, Amprius (Wuxi), which also supplies other major brands including Xiaomi and Baseus. According to industry sources cited by Chinese news site The Paper, a subcontractor had quietly replaced key materials in the cells, potentially compromising safety. China's market watchdog has since suspended dozens of Amprius' CCC certifications and launched a formal investigation. Battery cells typically account for close to half of a power bank's total cost, making them a common target for cost-cutting. 'Margins are tight. Brands outsource, factories compete on price, and suppliers get squeezed,' one longtime manufacturer told The Paper. 'If something goes wrong at the cell level, the whole chain is exposed.' Peter Xie, the founder of Guangdong-based phone accessories maker Prosment, said that focus should be placed on the inspection and control of raw materials. 'Avoid making high-density cells and mobile power bank assemblies with overly tight dimensions,' he told CNA. Wang Shuhai, general manager of Hong Kong-headquartered Nohon, said the effects of the 'one-size-fits-all' rule have been swift, referring to the blanket enforcement of the CCC mark requirement on all power banks. 'After-sales pressure has surged,' he said, referring to the wave of customer returns for uncertified power banks that were legally sold before the mandatory CCC certification requirement came into effect in August 2024. At the same time, certified brands are seeing a surge in demand, he said. 'Sales orders have jumped … consumers now prioritise products with clear compliance guarantees,' said Wang, while also noting that raw material prices are 'higher than before'. The recent enforcement of the compliance policy is accelerating a market reshuffle. 'Many small and mid-sized sellers unable to absorb compliance costs are exiting the industry,' Wang said. 'Production capacity is increasingly concentrated among top-tier brands.' According to a 2024 industry report, China's shared power bank market was worth 12.6 billion yuan, with an estimated annual growth rate of around 20 per cent. Still, Wang believes the shake-up is necessary. 'This will improve regulatory oversight, accelerate innovation, and weed out low-quality products - bringing the industry back to a healthier track,' he said. Tian Xuan, vice dean at Tsinghua University's PBC School of Finance, described the industry shake-up as short-term pain for long-term gain. 'While its sudden rollout may inevitably cause inconvenience, it serves as a timely and effective measure to reduce potential hazards and ensure passenger safety,' he said, referring to the domestic flight ban on non-compliant power banks. On the crackdown, he noted that vendors may face unsold inventory and slower sales.
Yahoo
21 hours ago
- Business
- Yahoo
Texas Instruments board declares third quarter 2025 quarterly dividend
DALLAS, July 17, 2025 /PRNewswire/ -- The board of directors of Texas Instruments Incorporated (Nasdaq: TXN) today declared a quarterly cash dividend of $1.36 per share of common stock, payable August 12, 2025, to stockholders of record on July 31, 2025. About Texas Instruments Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, enterprise systems and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TXN-G View original content to download multimedia: SOURCE Texas Instruments Incorporated
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Legislators Embrace Technology Recycling to Compete With China
The digital detritus of discarded laptops, phones and other electronics contain much-sought-after resources hidden in plain sight. Lawmakers at a congressional hearing on Wednesday pushed for improved recycling infrastructure to secure critical minerals, such as lithium, that power electric vehicles and smartphones. The race is on to secure critical minerals in the U.S., in part to offset China's dominance in the ownership and processing of these materials. The U.S. is also lagging behind China on renewable energy and electric vehicles, driven in part by critical minerals.
