The slowdown in smartphone sales growth will not only hurt Apple

According to foreign media reports, several data shows that the growth rate of high-end smartphone sales has slowed down; now there is still a week before the start of the technology industry financial report season, it is time to summarize which companies may be most affected by the second half of the performance forecast.

The first candidate is of course Samsung, the largest smartphone maker with a third of the global market share in the first quarter, in addition to Apple, the second largest smartphone maker with an 18% share.

But when the technology market begins to mature-it seems that the global smartphone market is in such a state, and large chip manufacturers will also be affected. In this regard, for Qualcomm, Broadcom and many other companies, considering their position in the smartphone value chain, it may also be inevitable. In addition, there are companies that supply smartphone chip components such as TriQuint Semiconductor and RFMD.

Technology stock research company Wedge Partners released a research report on Monday, once again expressing concern about the slowdown in the growth of the smartphone industry.

The slowdown in smartphone sales growth will not only hurt Apple

Analyst Brian Blair said in the research report: "We think Apple has recently lowered its iPhone production forecast for the second half of 2013 by about 20%", and pointed out that other analysts have also proposed similar ones in the past few weeks. View.

Blair wrote that Apple now plans to produce 90 million to 100 million iPhones from July to December, which is lower than the previous production target (115 million to 120 million).

Prior to this, Samsung released a slightly disappointing performance forecast last week, saying that revenue for the first half of the year is expected to be between 56 million won and 58 million won, which is lower than the median analyst ’s expectation of 58.6 million won.

Samsung ’s latest forecast caused its share price to plunge by 4%, showing that some investors were too optimistic about the company ’s latest product, the Galaxy S4. If the South Korean electronics giant reaches the median forecast, its sales will increase by approximately 20% year-on-year.

Although this is not the best indicator of smartphone sales growth because Samsung sells many other electronic products, it also shows that the company has experienced the same slowdown in revenue growth as Apple, which caused Apple ’s share price to increase from 9 last year. From April to April this year, it continued to decline.

As the smartphone market matures and expands, it is natural that the annual sales growth slows down.

According to Gartner, global smartphone shipments reached 210 million units in the first quarter of 2013, an increase of 42.9% from the first quarter of 2012. But the increase was lower than the 44.7% in the same period of the previous year.

But investors in the technology industry should not just worry about shipments. As the share of basic model sales in developing countries in global smartphone shipments has increased, the average sales price has also declined.

This is one of the reasons why Apple's profits fell by 18% year-on-year in the March quarter, and why analysts expect profits to fall by more than 20% in the June quarter.

This trend has also appeared in the largest smartphone companies. The sales of high-end models announced by BlackBerry two weeks ago were disappointing, and the stock price suffered a heavy setback. HTC said last week that despite the high-profile launch of HTC One series phones, However, sales in the latest quarter fell 22% year-on-year.

If small businesses start to decline and large companies begin to consolidate and control their markets, this is a very bad signal for the future growth prospects of specific product markets.

This will also be bad news for chip manufacturers such as Sanpower Semiconductor Co. and Weixun United Semiconductor, and some Wall Street stock analysts have begun to notice this.

On Monday, a report by market research company DA Davidson stated, "The company is concerned that the smartphone cycle has begun to enter a new era, and parts dealers will face tremendous average sales price pressure because mobile phone manufacturers will be forced to compete with low Cost substitute products to compete. "

Considering that Sanpower Semiconductor's stock price has risen by more than 30% so far this year and remained stable at the beginning of June, these concerns may not have been included in the valuation of stock prices. At the same time, the share price of Verizon United Semiconductor has risen 15% so far this year, in line with the increase in the Nasdaq Composite Index.

In contrast, the share price of semiconductor company Cirrus Logic has been hit hard this year, falling by 40%, due to market concerns about the impact of the smartphone market on the company. Both Broadcom and Qualcomm's stock prices fell slightly this year, due to investors' concerns about mobile phone sales growth and profit margins.

As a result, if Apple and other smartphone manufacturers provide weaker financial forecasts in the next few weeks, Sanpower Semiconductor Co. and Weixun United Semiconductor may become the biggest victims.

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