News Case

The smartphone market is not a dark place

Date: 2017-04-25
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After apple reported earnings, global change, the smartphone market immediately after apple, apple suppliers results shows the smartphone market hasn't bottomed out.

"Bloomberg" pointed out, including the contract and, provide mobile phone LED backlight Minebea products of Japanese companies, and Japan factory of panel Display and then issue the results, all show smart phones and mobile phone related companies in big trouble.

Check out the results of these companies. Pegatron, which assembles the iPhone, took a lower profit than expected, and revenue fell 16% in April. Minebea's revenues and profits were lower than expected; Japan Display, which supplies apple and other companies, admits that this year's profits have been falling fast, and this year it will lose money and cancel the dividend. In the industry's gloom, lenovo also delivered a four-year low, and analysts warned that lenovo will face increasing competition pressure.

Results from Asian suppliers is important because, suppliers must in advance for stock companies such as apple, samsung, millet, and therefore supplier Numbers can show signs of market ahead of time. The iPhone maker's first-quarter results showed a decline in quarterly revenue for the first time in 13 years, a sign of a slowdown in the market. Some companies have even been hit by a triple whammy, not just a fall in revenue, but also a competition for market share and a collapse in prices.

Richard Ko, an analyst at keiji securities, believes the smartphone industry will continue to be sluggish this year, with competition pressures intensifying and mobile phone prices will continue to fall.

Smartphone market faced since apple launched the iPhone in 2007 the worst situation, especially in the Chinese market, consumers replace apple with samsung if the frequency of the high-end mobile phone is not in the past, Chinese local brands are locking launched low-priced phones.

For the company, which helps Sony, lenovo and xiaomi, it expects net profit to plummet in the first half of the year. The reason is no, because its three customers were just as miserable as smartphone shipments in the first quarter. While samsung can also squeeze profits from more profitable handsets, it also makes no secret of the downturn in demand in the handset market.

Not even the upstream chip manufacturers are shown as signs, to help apple, qualcomm, huawei chip production, and is the largest application processor maker TSMC, also revised down in April 2016 smartphone demand forecasts.

Is the dawn coming?

Not everyone is so pessimistic, of course, and there is optimism about the demand for developing markets, particularly in India. Haven't imported high-speed 4 g technology of India's market demand for mobile phones is still expected, TSMC said, more computing power, more functional mobile phone will attract more consumers to buy mobile phones from emerging markets, to care about the price of products. Another important will be in September this year, this is the time of apple's new iPhone, new the launch of the iPhone can usually just to stimulate the market demand in the shopping season. But that was four months later. Sanford c. Bernstein & Co analyst pointed out that the orbit of smartphone growth slowdown may not have thought so bad, however, the mobile phone market growth slowdown is irreversible fact, I'm afraid.

The smartphone market is not a dark place

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