Taiwan handset sales likely to fall 9% or more in 2022

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We’re virtually to enter the 2d quarter of 2022, which means that nosotros will soon get-go to see earnings reports from some of the nigh important companies in the tech earth. Take Apple, for example; the visitor recently said it will denote its second-quarter earnings for 2022 on April 28. Naturally, we are expecting to see new record-breaking sales numbers in almost every department, as information technology seems that Cupertino ever surpasses its sales expectations. Still, the latest information from TSMC suggests that smartphone sales will start to be affected as demand for smartphones and other devices is slowing.

According to TSMC’southward Chairman Marking Liu, demand for smartphones, PCs, and other consumer electronic devices will decrease because of the ongoing pandemic and the issues caused by conflicts back in Europe. This information is rather critical because that Taiwan Semiconductor Manufacturing Company is 1 of Cupertino’south principal suppliers, as it is in charge of making the A-Series and M-series chips that are institute in the latest Apple tree products.

“Everyone in the industry is worried almost ascent costs across the overall supply chain… The semiconductor industry already and direct experienced that price increment.”

Farther, Liu warns about the changes in the pricing of components and materials, as everything is getting more and more expensive. In other words, production costs will most probable go upward, and these costs
“could eventually be passed on to consumers,”
which means that the demand for new devices may besides be affected by college price tags.

However, this doesn’t mean that TSMC isn’t prepared for what may lie ahead, equally the company will “reorganize and prioritize orders” to supply those customers who can sustain healthy demand.

“Despite the slowdown in some areas, we still see robust need in automotive applications and high-performance calculating as well as internet of things-related devices. Nosotros still cannot encounter our customers’ demand with our current capacity. We volition reorganize and prioritize orders for those areas that still see healthy demand.”

Yet, this may also hit Apple, as recent rumors suggest that the company is also planning to cut down on iPhone SE 2022 production by up to 20 percentage, as its recently launched smartphone isn’t selling equally well as the company had expected. Ming-Chi Kuo likewise mentioned that
“the new iPhone SE demand is lower than expected,”
which may force Cupertino to reduce its production to 15 to 20 million units, down from the originally planned 25 to xxx million orders.

Source: Apple

The reasons behind these possible changes in production may also be linked to the ongoing disharmonize between Russia and Ukraine, which has besides affected Samsung’southward branding in some European countries. Further, inflation is another of import factor that volition most likely make everything more than expensive.

To make things worse, we must as well call up that fuel prices accept constantly been going upwardly, so it’due south also logical to think that aircraft prices will become out of control. Moreover, shipping container rates from China to the US keep on the rising, which means that we may besides get to see this gene affecting the final toll tag on time to come consumer electronics, which would also affect need. But then over again, we could also see users opt to purchase their new devices and other products before prices go through the roof. And that’s exactly what I did with a picayune something I bought recently.

For now, we can only hope that the latest variant of COVID-19 gets under control and that Russia and Ukraine find a peaceful solution to their issues without having to cause unnecessary conflicts and, more chiefly, without having to hurt innocent people.

Nikkei Asia |

Source: https://pocketnow.com/tsmc-smartphone-demand-could-start-decreasing/