Most IC design houses are generally uncertain about the prospects for the second half of 2023, as many end-market brand vendors and channel operators of consumer electronics products have expressed pessimism about demand in the second half.
For IC design companies, this phenomenon means there may not be many surprises in this year's traditional peak season, and the upward recovery momentum might not come until 2024, according to industry sources.
Apart from the sustained demand in the gaming sector, the sources noted no signs of demand rebound for consumer and commercial product lines, which account for a larger share of IC vendors' shipments.
The sources added that the recent replenishment demand from channel operators also indicated that these operators are not confident about the prospects of the upcoming mid-year 618 shopping season in China.
Most NB brands, the sources continued, still maintain a double-digit percentage decline for their annual shipments this year, adding that whether the reduction would be more significant than the expected 10% depends on the subsequent changes in the macro-economic conditions.
As for handset applications, the outlook is even less optimistic. According to supply chain sources, Apple, which has been performing relatively stable so far in 2023, is reportedly likely to scale down the preparation of components for the next-generation iPhone products slated for launch in this year's second half.
Meanwhile, Samsung Electronics reportedly tends to revise its smartphone shipment target downward for this year. Additionally, the sources added that Chinese smartphone brands do not hold high hopes for the second half.
The Chinese consumer market, originally expected to recover gradually, faces increasingly severe economic challenges. Most supply chain sources in China's handset industry are pessimistic about the outlook for the second half due to a lack of powerful specs upgrades and innovations by Chinese handset vendors so far this year.
Although IC demand for wearable and TV applications has become stable recently, industry sources said no signs indicate that such demand momentum from the two sectors will rebound significantly this year.
As such, many IC vendors have revealed much more conservative views for 2023 at their latest conference calls than their remarks earlier this year.
Article translated by Steve Shen
