Overflowing Chinese smartphone inventory…Parts Industry’s…

Overflowing Chinese smartphone inventory…Parts Industry’s Dark Clouds in the Fourth Quarter

Chinese smartphone manufacturers’ orders for application processors (APs) are expected to decrease for five consecutive quarters until the fourth quarter of this year. The global parts industry, which is linked to China’s smartphone industry, is also inevitably hit.

According to industries on the 19th, Taiwan’s IT media Digi Times, citing data from Digi Times Research, predicted that Chinese smartphone brands’ AP orders will decrease by 16.5% in the fourth quarter of this year compared to the same period last year. Compared to the previous quarter, it is expected to decrease by 28.3%.

China is in a situation where demand for electronic products is decreasing significantly due to the “Zero Corona” policy and the sluggish economy. Due to this, China’s semiconductor production stood at 22.5 billion units last month, down 26.7% from the same period last year. This is the biggest monthly drop since 1997 when the tally of Chinese semiconductor production began.

The number of APs supplied to Chinese smartphone brands in the third quarter of this year was 199.5 million, up 10.2% from the previous quarter. The effect of launching a new smartphone to prepare for the Gwanggun Festival was great. However, AP supply decreased by 19.4% compared to the same period last year.

DigiTimes pointed out that Chinese smartphone manufacturers’ inventories are not easily exhausted, which will continue to be a problem. Until the fourth quarter of this year, orders for smartphone APs in China are expected to fall 16-20% in five consecutive quarters compared to the same period last year.