Smartphone AP shipments in China in 3Q22 to grow in 3Q22, says DIGITIMES Research

Smartphone AP shipments in China in 3Q22 to grow in 3Q22, says DIGITIMES Research

Smartphone AP shipments in China in 3Q22 to grow in 3Q22, says DIGITIMES Research

Shipments of application processors (APs) used in smartphones released by China-based brands grew 10.2% sequentially but grew 19.4% in the third quarter of 2022, according to the latest China smartphone data from Digitimes Research. With a decline to 199.5 million units. AP Tracker.

Sequential growth mainly resulted from the release of new smartphone models, but growth was lower than expected amid weak market demand and high inventory of finished products.

High inventory levels will continue to be a major problem for Chinese smartphone brands in the fourth quarter and their AP order pull-ins are expected to slip 28.3% sequentially and 16.5% year-on-year, resulting in a 16-20% decline for the AP industry. Will experience- Year decreases in each quarter according to the five quarters directly China Smartphone App Tracker by Digitimes Research,

Smartphone AP shipments increased in the third quarter, thanks to demand for new-generation smartphone models from Chinese brands for the year-end shopping spree. Since Qualcomm didn’t cut prices of its processors, many Chinese brands have turned to MediaTek’s Dimensity 8000 series or better solutions for their flagship models.

Unisoc’s unsatisfactory product yield rate also prompted Chinese brands to shift their AP orders for entry-level to mid-range smartphones to MediaTek, which achieved the highest sequential shipment growth among all suppliers in the quarter.

In the fourth quarter, all major AP supply partners of Chinese smartphone brands will see shipments decline by more than 20% sequentially due to weak final demand and weather. MediaTek, which will have the least decline among major suppliers, is also expected to see a decline of 24.3%.

Emerging markets are facing a growing backlog of handsets due to inflation and stagnant replacement demand. China-based smartphone brands are expected to slow down their order pull-in for entry-level 4G smartphone APs and show more enthusiasm on new 5G models for their home market.

The shipment share of 4/5nm APs will increase to 27.3%, surpassing 12nm APs. The shipment share of APs made through 6/7/8nm nodes is expected to exceed 40% due to strong demand for mid-range 5G smartphones and high-end 4G smartphones.

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