Chip Supply Chain Crisis
Since the beginning of this year, affected by three major factors, such as rising inflation, the Russia-Ukraine war and the lockdown of the Chinese mainland, the global mobile phone industry is in a predicament of weak sales and inventory depletion. Apple and Samsung, the two smartphone giants, have announced production cuts one after another. The market is expected that the mainland mobile phone manufacturers are likely to follow the production cuts next year, and this wave of cold wind in the market is difficult to stop in a short time.
Apple released the new iPhone 14 series in September this year, and the sales also showed two conditions. The high level Pro version sold well, but the flat price of the iPhone 14 fell into slow sales, so Apple had to cut production of the affordable model, which sounded the first alarm of the weak mobile phone market.
Samsung said it plans to slash its smartphone shipments by 13 percent next year, or about 30 million units. The company will focus on the lower-tier models of the A series and M series, which used to be the backbone of its sales. Samsung is the first brand to announce a cut in its smartphone shipment target for next year, sending shockwaves through the industry. Market research agency Canalys latest data pointed out that Samsung is the world's largest mobile phone brand market share (about 22 percent), Samsung led the production reduction, the mobile phone industry is an indicator of significance, indicating that the current mobile phone market ice storm when it is still uncertain.
Industry insiders say that even the top two best-selling brands have to cut production and accelerate inventory destocking, not to mention other mobile phone brands, which are expected to lower sales next year. At present, the top five mobile phone brands in the world are Samsung, Apple, Xiaomi, OPPO and Vivo in order of market share ranking. Among them, Xiaomi, OPPO and Vivo are expected to launch new phones in the first half of next year. At this time, the expansion of production capacity may lead to the worsening of mobile phone inventory.
Industry experts say that if market demand remains sluggish, the mobile phone industry is likely to continue to fall into recession next year.
In response to the reduction of Samsung's shipment volume next year, Mediatek, Dalitopo, Shuanghong and Jinget are all in the supply chain of Samsung's middle and low order smartphones. Dalitopo supplies lens module, Mediatek supplies main chip, Shuanghong provides cooling module and Jinget is responsible for quartz components, among which Mediatek and Samsung are the closest. But none of the supply chains comment on individual customers.
Mobile phone key component business, see the light market
Smartphone market set off an ice storm, leading Samsung inventory adjustment, Japanese business Murata, ** giant, Tongxin electric, Duntai and other mobile phone key components suppliers are also generally pessimistic about the market situation, revealed that the mobile phone chain is not good.
Murata is the world's leading passive component laminated ceramic capacitor (MLCC) market leader and an indicator in the smartphone industry, providing electronic modules and components for Apple iPhone, Samsung smartphones and Chinese mobile phone brands Dachang. Nakajima, Murata's president, had warned that smartphone demand in Greater China should show no signs of recovery this year and that even next year sales would continue this year's decline.
Taiwan's leading passive components company Guojue said that it will take about six months to adjust the inventory of standard products due to the uncertainties of the lockdown on the COVID-19 outbreak in the mainland, coupled with no signs of an end to the Russia-Ukraine war, and the slowing demand for consumer electronics such as laptops and smartphones. However, the demand for special products such as industrial controls and automobiles remains stable, and the capacity utilization rate of related products remains high.
COMS image sensing chip (CIS) packaging manufacturer Tongxin Electronics also does not hesitate to say that the current mobile phone market client inventory continues to rise, mobile phone sensing component suppliers may need more than two to three quarters to reduce inventory, it is estimated that the end of the second quarter next year, after the third quarter, Tongxin Electronics related business will rebound.
