According to reports in the Indian media, India has decided to delay the implementation of import restrictions on electronic products such as laptops, tablets, and servers. This delay pushes the commencement date to November 2023. As a result, Taiwanese, American, and Chinese laptop manufacturers are now reevaluating their production strategies in India and expediting their applications for importing electronic goods.
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According to Taiwan’s Economic Daily, while two high-end models of the iPhone 16 are expected to feature larger screens next year, there are indications that the new iPhone SE, positioned as an entry-level device, will also follow suit by enlarging its display. Insider sources have revealed that the iPhone SE is set to enter its fourth generation, taking design cues from the iPhone 14 base model, with a 6.1-inch screen and the elimination of Touch ID and Home button in favor of Face ID as the biometric authentication solution.

The current iPhone SE, in its third generation, is the only iPhone model with both Touch ID and a Home button. If the fourth-generation iPhone SE no longer includes the Home button and eliminates Touch ID, it would mean that all iPhones will feature a full-screen design.

Furthermore, reports from the market suggest that the fourth-generation iPhone SE will sport a 6.1-inch screen, a significant increase compared to the 4.7-inch display of the third-generation iPhone SE released in 2022. In terms of performance, the fourth-generation iPhone SE is expected to be powered by Apple’s A15 chip.

Source to China Times, on the 25th of this month, Huawei introduced its top-tier flagship smartphone, the Mate 60 RS. The entire supply chain is buzzing with anticipation. However, major chipset manufacturers, MediaTek and Qualcomm, both stand ready for what lies ahead. The reason for their vigilance stems from their previous share of the pie, which was snatched away by Huawei. Now, there’s concern that those gains may slowly be taken back.

For MediaTek, although Huawei’s new phone is positioned as a high-end model, it doesn’t pose a direct threat to MediaTek’s focus on mid-range and low-end 5G chips. However, industry insiders believe that Huawei might not rule out the possibility of launching mid-range and low-end 5G phone chips in the future, deepening the HarmonyOS, which could further squeeze MediaTek’s market share.

Huawei has traditionally used its in-house HiSilicon-designed chips for its smartphones. However, due to US sanctions, Huawei’s market share plummeted, allowing other Chinese smartphone competitors to seize opportunities. MediaTek and Qualcomm benefited from this shift in orders.

Recently, Huawei has made a strong comeback. Following the low-key release of the Mate 60 Pro, it has now unveiled the flagship RS model. After 3 years of intensive efforts, Huawei has achieved comprehensive self-reliance in operating systems, software, databases, and other foundational software. It has also completed the development of domestic alternatives for 13,000 components, investing heavily in the semiconductor supply chain.

The most impacted player in this scenario is Qualcomm, which primarily targets the high-end market. There are even expectations that by 2024, Qualcomm will lose all Huawei smartphone orders. Although MediaTek’s mainstream models have not been directly affected, there’s a possibility that Huawei may strengthen its HarmonyOS ecosystem, gradually penetrating the mid-range and low-end segments. MediaTek needs to remain vigilant. Huawei’s Nova series, for instance, is aimed at mid-range models, and it may not rule out using its in-house Kirin 5G chips to gain a stronger foothold in the market.

The initial stock of the Mate 60 series reached 15 million units, and the shipment target for 2023 has been raised to 20 million units, including foldable phones like the Mate X3 and X5. Supply chain sources suggest that Huawei has internally raised its overall shipment target for 2023 to 40 million units, and the market anticipates even higher volumes of 50 million to 60 million units in 2024.

Industry insiders point out that due to strong demand for Huawei’s products and better-than-expected i15 orders, there are reports of inventory replenishment in the smartphone supply chain. However, in the future, both China and the United States will cultivate their respective supply chains, reducing the win-win situations. For instance, in the RF Front-end segment, Huawei has started to use domestic supplier Maxscend Technologies, which could squeeze market orders for US and Taiwanese suppliers. (Image credit: Huawei)

(Source: https://www.chinatimes.com/newspapers/20230927000252-260204?chdtv)

Source to YICAI, LG Displays (LGD) has decided to halt the sale of its 8.5Gen LCD panel production line in Guangzhou, China. Earlier this year, there were rumors about LGD seeking potential buyers for this facility. However, as of September 25th, LGD has announced its intention to cease the sale and aims to achieve full production capacity by the next year. This decision reflects the overall resurgence in the global LCD panel industry. Nevertheless, there remain concerns about the stability of panel prices, given the uncertainty surrounding increased panel production capacity and the recovery of end-user demand in the coming year.

Amid the shifting landscape of Korean panel companies expanding their LCD panel business and a diversifying global panel supply chain, China’s leading panel manufacturer, which currently holds over 60% of global LCD TV panel shipments, must tread cautiously.

The LGD Guangzhou 8.5Gen panel plant marked LGD’s first overseas panel production facility and held high expectations. However, due to an extended industry downturn lasting for the past couple of years, LCD panel prices plummeted below production costs. South Korea’s other panel leader, Samsung Display, even closed all of its LCD panel production lines. In response, LGD downsized its LCD panel business and planned to shift its focus towards OLED panels. In this context, the capacity utilization of LGD’s Guangzhou 8.5Gen LCD panel plant fell to half, and rumors of seeking buyers emerged.

However, by the end of June this year, LCD panel prices rebounded from their low point, returning to profitability. As we approach the final quarter of 2023, with the current LCD TV panel market in a profitable state, LGD plans to restore full production in 2024, increasing its LCD panel output from 7 million pieces this year to 16 million pieces next year.

The rebound in LCD panel prices this year is not solely due to high demand, shifting the industry from oversupply to demand-matching supply. It’s primarily because major LCD panel manufacturers have rigorously controlled production capacity and reduced output, gradually warming up panel prices and restoring profitability to the industry.

In 2023, BOE, TCL, and HKC are expected to account for more than 60% of global LCD TV panel shipments. TCL, in particular, announced a change in its operational strategy in July, shifting from full production to adjusting capacity utilization dynamically according to market demand. The revival of the panel market in the first half of this year was a result of supply-side adjustments and optimizations, as external demand didn’t experience significant growth.

With China’s National Day holiday approaching, research organizations such as AVC and GfK predict a year-on-year decline in China’s TV market during the holiday season. Next year, if demand in the consumer electronics market doesn’t fully recover, and LCD panel manufacturers significantly increase supply, there may be concerns about maintaining stability in LCD panel prices. LGD has been less inclined to engage in price wars, and this includes global players like LG Electronics, Samsung Electronics, and Skyworth, who have substantial shipments in the global TV market. However, in a stagnant market, if someone increases supply, others may be compelled to reduce shipments.

According to TrendForce Research, TrendForce reports that panel makers chose to maintain the surge in TV panel prices by controlling production as Q3 approached. Contrarily, brands, in their bid to sustain sales momentum, have not been able to transfer increased panel costs to consumers in the form of retail price hikes. This precarious balance has driven many brands to the brink of financial losses for Q3.

Notably, as international brands boost shipments gearing up for end-of-year celebrations, and with China’s Double 11 shopping festival stocking peaking at the end of September, an 11.9% increase in Q3 TV shipments is anticipated, amounting to 52.24 million units. Still, this falls 1.3% short of TrendForce’s previous estimates. The persistent rise in panel prices in 2H23 will compel brands to trim down on less profitable product lines. Consequently, the annual global TV shipment forecast has been revised downward to 198 million units, a 1.5% YoY decrease.

Next year, LGD’s increased supply of LCD panels could potentially impact partnerships between Chinese panel manufacturers and brand customers. In the context of a globally diversified TV brand supply chain, China’s leading panel companies are also accelerating their overseas expansion efforts. TCL smartphone and TV LCD module production capacity in India is already operational, and they are collaborating extensively with Indian and Chinese customers, with utilization rates reaching 70-80%.

On September 8th, BOE announced that its first-phase project in Vietnam and its Mexican plant have begun mass production for customers. BOE also disclosed plans to invest in the second-phase project in Vietnam, mainly targeting increased demand in Europe, North America, and Southeast Asia, while leveraging advantages in overseas manufacturing costs and tariffs to promote high-quality development of overseas business.

(Source: https://www.yicai.com/news/101866356.html)

Source to UDN, in the wake of sluggish demand in the end-user market, the final stretch of September witnessed the tail end of a promotional surge in TV panel inventories as prices for panels below 50 inches seemed to reach a state of stagnation.

According to TrendForce’s view, Eric Chiou, Senior Research Vice President at TrendForce, has sounded the alarm, suggesting that TV panel prices may undergo a downward adjustment starting in November. This reflects a fourth-quarter demand that falls short of expectations, with continued weakness expected in the traditional off-season demand for the first half of next year.

Industry insiders contend that as TV panel pricing faces pressure to halt its upward trend, companies like AUO and Innolux, despite briefly enjoying profits this quarter, are likely to experience a downturn in their fourth-quarter performance, making it challenging to achieve an annual turnaround.

Eric Chiou analyzes that TV panel prices started rising in March this year. This was primarily a response to panel manufacturers’ consensus decision to reduce production after suffering heavy losses. However, due to the impact of a sluggish economy, terminal demand has failed to see significant improvement. Additionally, brand manufacturers, in response to rising panel prices, began planning early for the procurement of year-end panel needs in the second quarter and from July to August. This trend is already reflected in the pricing of TV panels below 50 inches, which has shown signs of stagnation since September.

In response to warnings from research institutions, it is feared that TV panel prices may cease to rise and may even decline in the fourth quarter. Yang Chu-hsiang, General Manager of Innolux, recently stated that the panel market’s prosperity is as unpredictable as a typhoon, and vigilance is required regarding the consumption power of the terminal market. He emphasized that panel manufacturers would not rush to maximize production but would instead make minor adjustments to meet demand steadily. He also reiterated the expectation that the second half of the year would be better than the first, with next year surpassing the current one.

During a recent earnings conference, the Chairman of AUO revealed that TV panel shipments increased by 5 percentage points in the second quarter. Coupled with cost-saving efforts, the operating gross profit turned positive for the quarter, and losses narrowed compared to the first quarter. Looking ahead to the third quarter, Peng remains optimistic, stating that “the worst time for the panel industry has passed.” With back-to-school and year-end sales seasons approaching, he anticipates that the “second half of the year will be better than the first.”

However, as the fourth quarter faces unfavorable global economic conditions, Eric Chiou believes that brand-end inventory for events like China’s Singles’ Day and the U.S. Black Friday promotions is taking a more pessimistic and conservative stance. September marks the tail end of the high-volume inventory period for TV panels, and with Chinese panel manufacturers having a significant share of TV products, they are expected to profit handsomely this season. On the other hand, Taiwanese manufacturers, with a relatively lower share of TV panel shipments, may hover near breakeven or see modest profits in the third quarter. If TV panel prices halt their upward trend in the fourth quarter, achieving the annual goal of returning to profitability may prove elusive.

(Source: https://money.udn.com/money/story/5612/7462519)