The growth of manufacturers of components for smartphones is slowing down due to the saturation of the Chinese market
In the first quarter of 2015, iPhone sales grew by 40%, and along with them, the supplier companies. The Japanese manufacturer of ceramic capacitors Murata, the largest customer of which is Apple, raised its operating profit over the same period by 116%. Taiwanese camera maker Largan increased profits by 61%. LG Display, the manufacturer of screens for Apple phones, has increased its profits by 8 times, Vedomosti writes .
But the smartphone market is starting to slow down. In 2013, its growth was 39%, in 2014 - already 28%, and in 2015, according to the head of the HSBC division, Stephen Pelayo, it will not reach 10%.
The saturation and deceleration of the Chinese component market affects Chinese smartphone makers. Slows down the growth of Xiaomi. Strategy Analytics warns that the rapid growth of this manufacturer is coming to an end.
Taiwanese suppliers are also slowing growth. Taiwanese MediaTek, the largest supplier of processors for smartphones to the Chinese market, in 2013 cost twice as much as in 2011, but by 2015 the price of the company's stock had fallen by a third. MediaTek and Qualcomm are forced to fight a new strong player - the Chinese Spreadtrum. Spreadtrum was founded in 2001 and produces processors for smartphones, tablets and modems.
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Nicholas Berat, head of analysis for CLSA's technology markets, points out that Chinese brands prefer to have Chinese suppliers, that “the supply chain is surprisingly flexible with respect to specification changes, redesign and payment terms”. This view is supported by the words of Xiaomi vice president Hugo Barr, former vice president of Google.
Barra says that the long term sale and service of each new device allows you to enter into lucrative contracts, and the company's close proximity to manufacturing plants in China allows you to manage the cost structure. But the most important element is the management of the supply chain of components.
But the smartphone market is starting to slow down. In 2013, its growth was 39%, in 2014 - already 28%, and in 2015, according to the head of the HSBC division, Stephen Pelayo, it will not reach 10%.
The saturation and deceleration of the Chinese component market affects Chinese smartphone makers. Slows down the growth of Xiaomi. Strategy Analytics warns that the rapid growth of this manufacturer is coming to an end.
Taiwanese suppliers are also slowing growth. Taiwanese MediaTek, the largest supplier of processors for smartphones to the Chinese market, in 2013 cost twice as much as in 2011, but by 2015 the price of the company's stock had fallen by a third. MediaTek and Qualcomm are forced to fight a new strong player - the Chinese Spreadtrum. Spreadtrum was founded in 2001 and produces processors for smartphones, tablets and modems.
')
Nicholas Berat, head of analysis for CLSA's technology markets, points out that Chinese brands prefer to have Chinese suppliers, that “the supply chain is surprisingly flexible with respect to specification changes, redesign and payment terms”. This view is supported by the words of Xiaomi vice president Hugo Barr, former vice president of Google.
Barra says that the long term sale and service of each new device allows you to enter into lucrative contracts, and the company's close proximity to manufacturing plants in China allows you to manage the cost structure. But the most important element is the management of the supply chain of components.
Source: https://habr.com/ru/post/290640/
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