Re: Microchip withdrawing FAEs from distributers - bad decision???

Mike Harrison <mike@xxxxxxxxxxxxxxx> wrote:


My personal view is that it will provide a short term gain and heavy medium term loss
for Microchip's market share. What the stock price does over the same period is
anyone's guess....

I'm not convinced this is a particularly bad move - web/email/phone is an entirely viable means of
support these days,

Me too. I read a magazine interview with Microchips CEO recently (can't
remember where) and he was saying that design support was an area they felt
was increasingly important and they would be expanding.

Microchip's
online store has been cheaper than the distributors I checked.

I used it once, worked fine. They show prices and stock and seem to have a
lot of stock. Vastly less trouble than spending hours phoning round
distributors hoping to find some stock rather than being quoted
manufacturers lead times and MOQs.

I'm actually rather surprised that the whole distribution model has lasted this long - the net has
IMO made much of what they do obsolete.

Not just the NET, when distributors decided it was too expensive to hold
stock they removed the justification for their existence. Many
manufacturers still need to wake up, when their lead times are longer than
design and development cycles and there is no stock in distribution they
are not going to get design wins are they?

When I search for a part number on the net the number and nature of hits
from the far east make me wonder what it is like in that area, they seem to
have a vibrant distribution system based on holding and moving stock not
talk and moving paper.
.

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