"China Smartphone Shipments Recover... Samsung Electro-Mechanics and PI Materials Expected to Benefit"
[Asia Economy Reporter Minji Lee] There is a forecast that Samsung Electro-Mechanics and PI material companies, which have a high sales proportion related to Chinese smartphones, will benefit from the recovery of smartphone shipments in China and new product launches.
According to the industry on the 16th, smartphone shipments in China in July reached about 27.8 million units, an increase of 30.6% compared to the same period last year. This marks the first year-on-year increase in four months since March, and it also recorded a consecutive two-month increase compared to the previous month following June. The shipment volume had been sluggish due to the resurgence of COVID-19 in the first half of the year, which led to weaker-than-expected demand, and supply issues caused by semiconductor shortages, but it is now showing signs of recovery.
Researcher Lee Kyu-ha of NH Investment & Securities said, “Chinese companies, whose shipments were weaker than expected due to semiconductor shortages in the first half of the year, appear to be increasing shipments in preparation for improved semiconductor supply and the upcoming peak season in the second half.”
Smartphone shipments are also expected to continue increasing in August. This is because major Chinese companies, led by Xiaomi, have scheduled new product launches, and Huawei is expected to actively increase smartphone shipments to secure its existing domestic market share. Researcher Lee Kyu-ha analyzed, “The sluggish shipments in the first half were due to semiconductor shortages and other component supply issues, as well as weaker-than-expected demand caused by the resurgence of COVID-19. In August, the recovery is expected to continue with the mass launch of smartphones by Chinese companies.”
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Among domestic companies, those with a relatively high sales proportion to Chinese companies are expected to continue benefiting. Researcher Lee Kyu-ha explained, “Companies supplying general-purpose IT components such as MLCC and PI materials are expected to benefit, and Samsung Electro-Mechanics, which has a relatively high sales proportion to Chinese companies, is also expected to benefit.”
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