An analysis of various power supply business models

Power supplies are sold as AC/DC switchers and DC/DC converters, standard off-the-shelf products through distribution and custom products through direct sales, high volume products to blue-chip customers and low-volume products to small companies. Some companies make only one type of product and use only one sales method, while some make all types of products and use all types of sales methods to sell products to a wide variety of customers, large and small. In each case, the power supply business model (profit/loss statement) varies according the type of the business a power supply company pursues. Depending on the choice of the power supply business, a company is considered as high-growth or high-profit-margin company. This paper analyzes all these business models from the financial viewpoint.