Taiwanese media: Demand is lower than expected, smartphone manufacturers cut 5G component orders

According to Taiwan media Economic Daily, market news has revealed that due to terminal demand being lower than expected, smartphone manufacturers have lowered their 5G component orders, and the momentum of demand this quarter has dropped by 10% to 30% compared to the first quarter.

As for the reasons for the slowdown in terminal demand, industry insiders pointed out that one reason is that the epidemic in India has interfered with the local domestic demand market and impacted local mobile phone production bases; the second reason is that Malaysia, the Philippines, and Indonesia have also reported outbreaks, which have successively affected production and shipments; the third reason is that sales in mainland China, the largest market for 5G smartphones, are also lower than expected.

Industry insiders revealed that smartphone manufacturers are temporarily afraid to adjust orders for main chips that were previously in severe shortage, and this time they mainly reduced orders for peripheral components for 5G mobile phones.

For mobile phone component manufacturers, the response to this wave of mobile phone customers placing revised orders varies from quarter to quarter. Compared with the first quarter, the orders are reduced by about 10% to 30%. May and June will be a period of inventory adjustment.

As the market has seen a decline in demand and an increase in supply, some chip manufacturers with high vigilance have also begun to actively investigate client inventory, actual demand and terminal sales. Industry insiders believe that smartphone-related chips may have a chance to reach a balance between supply and demand in the third quarter.