Following reports that Apple and China’s major Android smartphone manufacturers have cut orders in the industry, a recent survey by Fubon Investment Consulting reports that MediaTek has recently revised its annual smartphone chip shipment forecast to a small margin. Its overall shipment reduces to 570 million while the Dimensity 9000 chips will reduce from 10 million to 5 to 6 million sets. In the past two months, due to the influence of factors such as the conflict between Russia and Ukraine, global inflation, and the outbreak of the pandemic in some cities in mainland China, the demand for some important consumer electronics markets including mainland China has weakened.
This is making smartphone manufacturers globally slash their shipment target for this year. These manufacturers are also scaling down their components orders. According to reports, Apple had cut the iPhone 13 and iPhone SE 3 orders by 2 – 3 million units each.
Ming-Chi Kuo also claims that Android mobile phone brands’ 2022 shipment plans have so far cut about 170 million orders. This accounts for 20% of the original shipment plan in 2022. Of which more than 70% of the orders are MediaTek chips. Putting it all together, the global reduction in smartphone shipment is more than 200 million units.
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Smartphone manufacturers will reduce MediaTek’s orders
Fubon Investment Consulting has previously warned that the market’s expectations for the MediaTek Dimensity 9000 chip are too high. According to the latest survey results, the shipment of the Dimensity 9000 chip in 2022 may greatly reduce. Due to the higher unit price of Dimensity 9000 chips and higher gross profit margin, once the shipment volume is revised, it will also affect the overall gross profit performance of MediaTek.
Looking at the second half of the year, Fubon Investment pointed out that due to the continued impact of COVID-19 on mainland China, the visibility of smartphone orders is very low.
In addition, JPMorgan Chase Securities also claims that the demand for mid-range 5G mobile phones in mainland China is weak. MediaTek’s 5G system-on-chip (SoC) may cut prices for the first time in the second quarter, with a price reduction of about 5-10%.
HSBC Securities claims that the global economic outlook is full of uncertainties. Shipments in 2022 can barely keep 1.3 billion units. Furthermore, the forecast for 5G smartphone shipments is also more conservative than before.
Fubon Investment Consulting predicts that global smartphone shipments will be 1.318 billion units in 2022. This will be a decline of about 3% from 1.352 billion units in 2021.
The important suppliers in Taiwan’s smartphone supply chain Largan, MediaTek, Hon Hai and Pegatron. We also have the likes of Yujing Optoelectronics, Novatek, Taiguang Electronics, Taijun, Zhending-KY, Wen Mao and so on.
