DRAMeXchange, a division of TrendForce, reports that the smartphone market has remained in the low season since 4Q17. Smartphone vendors did not start to stock up on components until the end of February 2018, when the end demand began to bounce back. Together with the remarkable performance of China's top smartphone brands, Huawei, Xiaomi, OPPO and Vivo, the global production volume of smartphone reached 340 million units in 1Q18, an increase of 5.3% over one year ago.
The upcoming fully connected era has witnessed influx of data, driving the construction of data centers. The amount of data will keep growing at multiples in the next 5 to 10 years. Key techniques like edge computing and 5G, which emphasizes high transmission efficiency, low latency and wide area connection, will lead the next wave of smart technology. Against this background, various types of chips and sensors will see explosive growth, says DRAMeXchange, a division of TrendForce. The demand for DRAM and NAND products will also increase.
In 2018 CES, South Korea Winter Olympics and MWC, 5G is undoubtedly a hot topic, companies including Qualcomm, Intel, Huawei, Samsung, Ericsson, ZTE and major mobile operators are all discussing 5G development blueprint. With the full Release 15 specification to be completed around the June 2018 by the 3rd Generation Partnership Project (3GPP), the competition for 5G technology will begin in 2018, says TrendForce.
Apple’s launch of iPhone X has led to a wave of 3D sensing technology, bringing its key component—vertical cavity surface emitting laser (VCSEL)—into the spotlight. However, the number of VCSEL suppliers with mass production capacity is very limited due to technical barriers, leading to short supply of VCSELs and thus delaying Android camp’s plan to follow suit. TrendForce estimates the penetration rate of 3D sensing in smartphones will grow from 2.1% in 2017 to 13.1% in 2018, while Apple remains the major adopter.
The growth momentum in global smartphone market will remain weak in 2018 due to lower demand and less replacement purchases, says TrendForce. Faced with continuous rise in the costs of upstream components, downstream mobile phone vendors have to re-consider the pricing or adjust the specification of end-products to cope with the cost pressures. The distribution of market share among the major players is expected to remain generally the same as last year. Therefore, TrendForce estimates the global smartphone production for 2018 at around 1.5 billion units, a 2.8% annual growth only, down from previously expected 5%.
