Chinese Handset OEMs to Increase Demand for Smartphone Sensors


Reading time ( words)

Apple and Samsung will remain the dominant buyers of sensors for smartphones through 2019; however, their share of sensor spending will fall. Bolstered by its fingerprint sensor, Apple represented nearly half (47 percent) of smartphone sensors in 2014, but the company’s share is expected to fall to 34 percent in 2019. At the same time Samsung’s share will decline from 23 percent to 15 percent, according to IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. Chinese original equipment manufacturers (OEMs) comprise an ever-larger share of revenues from sensors sold to the smartphone market, increasing from 20 percent of the market in 2014 to 38 percent in 2019.

According to the IHS Sensors for Mobile Devices Intelligent Service, Apple’s declining share is due to the growth of the overall smartphone market, even though its smartphone unit shipments are on the rise. Samsung’s share decline is due not only to the overall growth in the market, but also because of falling unit shipments. The South Korean company suffers from both Apple’s competition in high-end smartphones, as well as competition from Xiaomi and other Chinese providers of low-end and mid-range smartphones.

sensor_trend.JPG

“The smartphone market is healthy, dynamic and extremely competitive,” said Marwan Boustany, senior analyst for IHS Technology. “Chinese OEMs have proved willing to try any new technology that allows them to compete more successfully.  Of the many Chinese handset manufacturers, Xiaomi will consume the greatest number of sensors in 2019.”

China is proving to be an ideal environment for sensor suppliers seeking to enter the competitive smartphone market, and for smartphone OEMs hoping to differentiate their models with innovative features. The country is generally viewed as the place to test out new ideas and to fine-tune supply chains. Beyond the adoption of new and emerging sensors, more standard sensors are being adopted in very high volumes, thanks to the rapid growth in sales of mid-range and high-end smartphones.

The Chinese government’s decision to support local companies has led to an increase in local manufacturing and sourcing of electronic components. However today there are only a handful of suppliers with a relatively narrow portfolio. These companies include AAC Technologies and GoerTek, for microphones; MEMSIC, for accelerometers and magnetometers; and QST and other emerging start-up companies, for motion sensors.

“With the Chinese government’s strategic goal to increase the share of domestic suppliers, there is an opportunity for Chinese suppliers to expand their portfolios and become the preferred suppliers for Chinese OEMs,” Boustany said. “At the moment, though, it seems that Chinese OEMs are happy to use any supplier that fulfills their volume, performance and price requirements.”

About IHS

IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

Share

Print


Suggested Items

Telecom (Compute and Storage) Infrastructure Market to Reach $16.35B in 2022

09/03/2018 | IDC
A new forecast from IDC sizes the market for compute and storage infrastructure for Telecoms at nearly $10.81 billion in 2017. However, as Telecoms aggressively build out their infrastructure, IDC projects this market to see a healthy five-year compound annual growth rate (CAGR) of 6.2% with purchases totaling $16.35 billion in 2022.

What’s Coming in 3D Printing Technology in 2018

12/27/2017 | Cullen Hilkene, 3Diligent
First, the arrival of extrusion metal printing. Today's extrusion printers are the most prevalent and, arguably, user-friendly 3D Printers in the market. Now, after years of there being zero metal extrusion printers, there will be two in the new year from Desktop Metal and Markforged. These technologies promise new materials and a higher degree of user friendliness for metal printing.

Global LED Market Expected to Record a CAGR of close to 17% until 2020

05/26/2016 | Business Wire
This research report titled ‘Global LED Market 2016-2020’ provides an in-depth analysis of market growth in terms of revenue and emerging market trends. The market size is calculated on the basis of revenue generated from four segments, including general lighting, backlighting, automotive lighting, and others.



Copyright © 2019 I-Connect007. All rights reserved.