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Global SME Smart Phone OEMs to Experience Further Business Hardships

By Korbin Lan
Published: Sep 20,2017

TAIPEI, Taiwan - According to the findings of a recent study conducted by IDC, during the second quarter of 2017, due to weakening market demand coupled with the postponement of new products, although the global smart phone industry's manufacturing output experienced a slight increase of 1.4% over Q2 2016 and 3.8% over Q1 2017, it was still lower than originally forecast.

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IDC Worldwide Assembly Research Team Research Manager Sean Kao pointed out that “the seasonal high demand lunar New Year period has ended, and it is difficult to emulate many of the technological features in the new generation of Apple mobile phones. In addition, because many rival product manufacturers have switched to products with 18:9 screen ratios, they have adjusted their development plans for new products. Consequently, in the second quarter of 2017, the shipping scale of the smart phone industry only increased slightly from the previous quarter. “

In terms of the global top ten ranked smart phone assemblers, Apple experienced a decline in shipments while Oppo and Vivo experienced growth. The main influencing factor behind these sales figures was Xiaomi's significant growth in shipments. Of the specialty OEMs in Mainland China, only HUAQIN maintained their position in the top ten ten ranking global assemblers.

Looking into the future of the development of the global smart phone industry during the second half of 2017, due to slowing growth in global market demand and the top six global smart phone brands accounting for the majority of growth in the global market, second and third line mobile OEMs will experience even more difficulties in their development.

(TR/ Phil Sweeney)

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