-
Research Report
Research Directory
Semiconductors
LED
Consumer Electronics
Telecommunications
Emerging Technologies
Economics
- Membership
- Price Trends
- Press Center
- Blog
- Events
- Contact Us
According to TrendForce, the consumer electronics market will feel the brunt of the weakening stay-at-home economy, the pandemic in China, international tensions, and rising inflation in 1H22. Coupled with the traditional off-season, demand for relevant applications such as PCs, laptops, TVs, and smartphones has cooled significantly and downstream customers have successively downgraded their shipment targets for the year, while demand for automotive, Internet of Things, communications, and servers products remain good. At the same time, the supply chain will build higher inventories in general to mitigate the risk of material shortages due to transportation impediments induced by the spread of the pandemic and the ongoing war between Russia and Ukraine.
According to TrendForce research, due to lower-than-expected sales in 4Q21, the smartphone market in 1Q22 not only needed to adjust its accumulated inventory of finished products, but it was also affected by sluggish seasonal demand, resulting in relatively weak 1Q22 production performance. Coupled with the impact of recent events such as the Russian-Ukrainian war and lockdowns of Chinese cities, overall production performance in 1H22 will weaken, affecting total production in 2022. The original forecast of 1.38 billion units produced will be downgraded to 1.366 billion units, with annual growth rate slipping to 2.5%. Neither the COVID-19 pandemic nor the shortage of wafer production capacity has been significantly alleviated. This coupled with serious issues involving geopolitics, inflation, and energy shortages this year will generate variables in the smartphone market for 2022. Therefore, further downward revision of total 2022 production volume cannot be ruled out.
On the eve of Apple's upcoming new product launch conference, global market research organization, TrendForce, provides the following reference data for your articles and reporting.
Global smartphone production came to 356 million units for 2021, showing a QoQ increase of 9.5%, according to TrendForce’s latest investigations. The second half of last year saw demand injections related to the peak promotion season for e-commerce platforms and year-end holiday sales. These factors thus bolstered smartphone production and resulted in 4Q21 seeing the highest QoQ growth rate for the year. Apple’s new iPhones were the primary growth driver. On the other hand, the performances of a few smartphone brands were constrained by the shortage of some key components. Hence, the total smartphone production for 4Q21 was slightly lower compared with 4Q20 or even 4Q19.
AR/VR device shipments revised up to 14.19 million units in 2022, with an annual growth rate of 43.9%, according to TrendForce research. Growth momentum will come from increased demand for remote interactivity stemming from the pandemic, as well as Oculus Quest 2’s price reduction strategy. Microsoft HoloLens 2 and Oculus Quest 2 are first in market share for AR and VR, respectively.