DIGITIMES Research's latest analysis points out that domestic smartphones are facing serious inventory problems for finished products. It is estimated that the market will continue to be sluggish in the fourth quarter. Coupled with the impact of traditional off-season interactions, the shipments of major AP operators, Qualcomm , MediaTek , etc. will all drop significantly in the quarter, with a range of more than 25%.
DIGITIMES Research analyst Yang Renjie investigated and analyzed that the shipment of application processors (APs) required for mid-series smartphones in the second quarter was 181 million, a quarterly increase of 1.7% and an annual decrease of 17.1%. The main reason is that China's economy is sluggish, and the unsuspended Russian war in Shanghai and Ukraine and the continued impact of consumption power, and the shipment is not as good as expected. Looking ahead to the second half of the year, although the third quarter benefits from the new product effect, the shipment of APs required for Chinese smartphones is estimated to increase by 18.5% in the quarter, but the fourth quarter will still be affected by the accumulation of finished mobile phone inventory, with a quarterly decline of 33.3%, and will show annual declines for five consecutive quarters.
Starting from the second quarter of this year, sales of Chinese brands have been sluggish, and the problem of stock accumulation of finished mobile phones has gradually come to the forefront. In addition, the replacement of 4G mobile phones in emerging markets is not as good as expected due to inflation, and the shipment of APs for both 4G and 5G mobile phones is not good. In terms of industry performance, Qualcomm did not reduce its price due to adverse market conditions, allowing MediaTek's AP shipments to maintain quarterly growth in the second quarter.
enters the second half of 2022. In the third quarter, as new products are about to be launched at the end of the year, it is expected to boost AP shipments. Moreover, MediaTek (2454) Dimensity 8000 or above models are gradually being used by Chinese brands for flagship models, and the yield rate of Unigroup Zhanrui is not as expected, orders for APs for mid- and low-end mobile phones have also turned to MediaTek, which will increase the quarterly increase of MediaTek AP shipments than Qualcomm. As the fourth quarter begins, the market will be sluggish. Coupled with the impact of traditional off-season interactions, the shipments of major AP operators will all drop significantly in the quarter, with an increase of more than 25%. In terms of
process technology, the proportion of 6/7/8 nanometer process in the second quarter of 2022 in 2022 accounted for 38.9%, surpassing 12 nanometers and becoming the largest proportion of process. Entering the second half of the year, due to the impact of inflation in emerging markets, the replacement of mobile phones has stagnated, resulting in the accumulation of finished mobile phone products, and the shipment of APs for low-level 4G mobile phones has slowed down. In addition, the new 5G mobile phone products in the Chinese market are on the market, the proportion of 4/5nm process in the third quarter will increase to 26.8%, surpassing 12nm to rank second.
