Likely sale drop for Axis Communications
Axis Communications, a global market leader in network video, foresees a likely cut in availability of a number of Axis network products in the next few months, as some of subcontractors in Thailand are affected by the floods.
In a statement released on Thursday, Axis said it uses contract manufacturers and suppliers with factories in several places worldwide in order to ensure continuous and flexible production. A number of these suppliers and contract manufacturers are based in Thailand.
“It is difficult to judge today to what extent Axis’ business will be affected going forward by the reduced product availability. However, in view of the extent of the disruption, it is reasonable to assume that the reduced availability over the next 3-4 months can reduce sales by 10-15 per cent during the period," said Ray Mauritsson, president of Axis Communications.
To minimise the effects of the disruptions as a result of the Thai disaster, it has arranged production as much as possible with suppliers that have manufacturing facilities at other sites worldwide.
"In parallel, we are also working close to our Thai partners and are trying to help them as much as we can in the process of returning to full capacity,” he added.
