TrendForce reports that the global smartphone production volume for 4Q18 totaled 383 million units, staying at a constant level from the previous quarter. In response to the slacking consumer demand, branded smartphone makers scaled back their production in 4Q18 and paid more attention to inventory management. Looking ahead to 1Q19, they have set modest production targets due to the lower-than-expected sales in the previous quarter. Even though prices of components have been falling, smartphone makers will remain passive in their stock-up efforts since they are under inventory pressure. TrendForce forecasts that the global smartphone production volume for 1Q19 will come to 307 million units, showing a YoY drop of 10%.
According to the latest report by TrendForce - Breakdown Analysis of China’s Semiconductor Industry, the outlook for China’s semiconductor industry has been tampered since the second half of 2018 due to pessimistic economy worldwide and uncertainties brought by the China-U.S. trade war, although the industry managed to reach a total revenue of over 600 billion RMB in 2018. Looking ahead to 2019, the revenue of China's semiconductor industry is expected to reach RMB 729.8 billion, but the annual growth rate would slow down to 16.20%, the lowest in the past five years.
Mainstream high- and mid-power LED package products in the Chinese market witnessed price declines in December, according to the latest report from LEDinside, a division of TrendForce.
Global smartphone production volume for 2019 is expected to be 1.41 billion units, a decrease of 3.3% compared with 2018, according to the latest report by TrendForce. Brands would record lower production volumes this year because the overall demand outlook in the global smartphone market remains weak. The lack of breakthrough features or specs has made the consumers less active than before with respect to replacing their existing devices. If the demand outlook becomes worse, together with uncertainties and impacts from the U.S.-China trade war, the decline in global smartphone production may reach 5% in 2019. As for the global ranking of smartphone market share, Samsung would remain the market leader, while Huawei is expected to surpass Apple to become the world's second largest smartphone maker. Apple would then take the third place.
Development of 5G products and network has been ongoing in the past years. And the commercialization of 5G is expected to roll out in 2019, with 5G telecom services to be planned in the United States, South Korea, Japan, and China, etc. The arrival of 5G smartphones will also be in the spotlight this year. According to TrendForce’s latest report, Android smartphone brands, such as Samsung, Huawei, Xiaomi, OPPO, Vivo, and One Plus, all have a chance to launch 5G smartphones in 2019. However, the production volume of 5G models would only be 5 million units this year, a penetration rate of 0.4%, since the construction of 5G related infrastructure has not been fully completed.