The recent surges of COVID-19 cases in India, Vietnam, and other Southeast Asian countries have adversely affected the global smartphone market in terms of production and demand, according to TrendForce’s latest investigations. The global smartphone production for 2Q21 fell by 11% QoQ to a total of 307 million units. However, a YoY comparison shows an increase of around 10% for the quarter. The global production for 1H21 came to a total of 652 million units, translating to a growth rate of almost 18% compared with 1H20, when the pandemic was in the initial phase.
As TV demand increased in North America in 1H21 following the distribution of stimulus packages, TV brands continued to replenish their component inventories during this time, according to TrendForce’s latest investigations. Notably, brands adopted a rolling schedule for their TV shipment because their manufacturing operations for TV sets were disrupted by a shortage of panels in 2Q21. TV shipment for 1H21 reached 98.45 million units, a 10% YoY increase.
Shipment of curved monitors for 1H21 was constrained by the shortage of such components as panels and scaler ICs, according to TrendForce’s latest investigations. As countries begin to lift pandemic-related restrictions following increased vaccinations in Europe and the US in 2H21, consumer demand generated by the stay-at-home economy has undergone a noticeable slowdown as well. Taking these factors into account, TrendForce therefore expects annual curved monitor shipment for 2021 to reach about 15.6 million units, a 10% YoY increase.
Given the intensifying COVID-19 pandemic in India and Vietnam in April and May, TrendForce is revising its forecast of annual smartphone production for 2021 from 1.36 billion units down to 1.35 billion units in response to the second wave of coronavirus that has spread throughout India and Vietnam. Even so, global smartphone production may undergo a further decline in 2H21, since the pandemic is showing no signs of an impending slowdown in Southeast Asia and is therefore likely to hinder demand from the region.
As the Taiwanese IPC (industrial PC) market suffered from deferred orders due to supply chain and logistical disruptions that took place in 1H20, total domestic IPC revenue for 1H20 reached NT$105.4 billion, a 4.7% YoY decrease, according to TrendForce’s latest investigations. However, given that the pandemic was gradually brought under control in 1H21, the market was able to benefit from strong demand from China’s 5G infrastructure rollout, as well as from expanded investments by Europe and the US in public infrastructures such as roads and railways aimed at facilitating an economic recovery. Hence, Taiwan’s IPC revenue for 1H21 reached NT$115.1 billion, a 9.2% YoY increase.