Despite a surge in orders from smartphone brands and component suppliers in 2H23, there is a risk of inventory accumulation due to uncertain market demand.
November 17, 2023
Key Takeaways:
- The smartphone market has shown a slight recovery in 2H23, leading to a revised upward global shipment forecast for 2023 to 1,100~1,130M units.
- The increase is mainly attributed to Samsung and Xiaomi. Despite initial market sluggishness, recent additional orders from brands and component suppliers, including camera module manufacturer Sunny and chip producers like MediaTek, indicate a positive trend.
- While the digestion of inventory for components like camera sensors is progressing more rapidly than anticipated, caution is advised.
- The origin of the increased orders and whether they genuinely reflect actual market demand or are early pull-ins for the following year remains unclear. This uncertainty raises concerns that weak demand could result in excess inventory in 1H24.
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Authors
Eddie Han
Eddie Han, Sr. Analyst/Research Director at Isaiah Research, has been studying smartphone industry for 10+ years. Focus on smartphone and the related components supply chain research. Master in Social Enterprise, Fu Jen Catholic University, Taiwan. Currently as the Sr. Analyst/Research Manager of Smartphone Team at Isaiah Research and lead 3+ members to work on supply chain analysis from smartphone(Apple/Android), 5G, RF, camera, display to XR research with a solid methodology. Business development and customer management include top-tier smarphone brands and components vendors. Used to work as Sr. Industry Analyst/Section Manager for 10+ years at Market Intelligence and Consulting (MIC). Conduct 150+ smartphone industry reports on OEM/EMS/ODM shipment tracker, application processor, radio frequency, display and 5G communication related research.
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