Counterfeit or gray market parts and the problems they incur have been a hot topic for well over a year, and we’ve talked both about the problem and various attempts at resolution on several occasions (click here and here for links). I’m glad to see some others are taking the proverbial bull by the horns and educating the industry on the extent of the problem and potential solutions.
Today in its newsletter, my friends at Design Chain Associates offer a terrific summary of both. One nit: a group of blue-chip OEMs called the Alliance for Gray Markets and Counterfeit Abatement estimates electronics manufacturers are losing more than $100 billion due to fake parts — a sum that incredibly “does not take into account money spent on reworking, recalling and warranty support.”
I don’t doubt the issue is big, but $100 billion big? Hogwash! That’s the combined revenues of Foxconn plus Flextronics plus Sanmina-SCI plus Celestica plus Jabil.
Also in the wings: The Electronics Resellers Association, which is organizing a conference featuring several sessions on the problem for late Spring 2008.
It’s good to see the issue getting the attention it deserves.