July 27, Tianfeng International analyst Ming-Chi Kuo tweeted: "Wenmao (the world's largest gallium arsenide foundry) today's expectations for the second half of this year are very conservative, mainly because demand for Android phones is weak."
In addition, Ming-Chi Kuo also said: "Its expected inventory correction will continue until at least 4Q22. Even if the slowdown in the order cuts in June-July and the growth of mobile phone shipments in the Chinese market in June, it is still not enough to prove that the worst period of Android phones has passed.
(picture from the Internet)
Earlier, Wenmao released its revenue in the second quarter of this year. Data showed that the company's operating income in the second quarter was NT$5.297 billion, year-on-year. Declined by 14%, down 5% month-on-month. Net profit after tax in the second quarter was 544 million yuan, down 41% year-on-year and 31% month-on-month, and performed poorly.
(Picture from the Internet)
According to the market rules of previous years, the third quarter will be the traditional peak season for mobile phones. However, due to unfavorable factors such as the conflict between Russia and Ukraine, the repeated epidemic situation and global high inflation, the demand for Android phones has decreased and the inventory pressure has increased. In the short term, the market profit of Android phones may be further lowered.
Editor's comment: In recent years, due to frequent black swan events, the overall demand for mobile phones has generally been on a downward trend, but in the longer term, the general trend of 4G to 5G has not changed, so the industry still has long-term growth potential.
