ChinaZ.com (ChinaZ.com) July 27 news:In an updated forecast, Tianfeng analyst Ming Kuo notes that "Wen Mo (the world's largest gallium arsenide OEM) is conservative on the 2H22, mainly due to Android demand My latest survey points out that other component suppliers (e.g., MOSFETs, chargers, camera-related, etc.) have a similar view of stability and expect the inventory correction to continue at least through 4Q22. So even a slowdown in brand orders in June-July and a 9 percent increase in phone shipments in China in June are not enough evidence to suggest that the worst is over for Android phones."
Kuo's comments come after Wenmao reported earlier on Tuesday that its revenue for the second quarter of this year was NT $5.297 billion, down 14% year over year from the second quarter of last year and a quarter-on-quarter decline from the first quarter Net profit after tax in the second quarter was 544 million yuan, down 41% year-on-year and 31% quarter-on-quarter; Gross profit margin in the second quarter was 30.2%, down 5.5 percentage points year-on-year and 0.4 percentage points quarter-on-quarter.
Looking ahead to the third quarter revenue, Wenmao mentioned the impact of Android phone inventory adjustment, pointing out that China's smartphone market started to adjust from the first quarter, the conflict between Russia and Ukraine, the domestic pandemic and global high inflation and other factors led to phone demand further affected, destocking speed is still slow.
Wenming believes that in the background of low overall demand for mobile phones, high-end mobile phone customers in the United States and the pace of the past order stock, and Android mobile phone inventory is too high, so hold conservative expectations for the third quarter. However, in the longer term, this year's environmental change is only a short-term phenomenon, and the mid-to-long term 5G trend will not change, which will still drive the long-term growth of the industry.