Worldwide Smartphone Assembly Shipments Fell in Q4 on Weakening Demand

Global smartphone original design manufacturing and electronics manufacturing services assembly shipments fell 13.8 percent year-on-year in Q4 on weakening market demand, IDC reported Thursday. Shipments rose 2.1 percent sequentially, it said. Slowness in Q4 was due to “conservative supply and weakening demand” as the industry migrates to larger screen sizes, said analyst Sean Kao. “Chinese OEMs accelerated their inventory cleanup of old models while staying conservative on orders for new models,” said Kao. Component suppliers were also cautious due to fast-changing specs, contributing to an “unusual shipment trend” throughout the supply chain up to the Chinese New Year, he said. Trends to watch out for in upcoming quarters are the continued shift to full-screen smartphones and improving face-recognition technology, IDC said. Total smartphone shipments will not likely grow significantly until low-end smartphone specs stabilize in Q2, said the analyst. Midrange and low-end devices are likely to be a key segment for vendors as emerging-market demand becomes a primary growth driver, he said.