News You Can Use – 5.6.19 – 5.10.19

As the leading independent distributor of electronic components, Smith tracks open-market activity and conditions as an early indicator of trends and supply chain disruptions. Industry news provides important and time-sensitive information when strategically procuring components, planning for NPIs, or making any critical decisions in the supply chain.

We’ve curated a selection of this week’s industry articles that we feel can help customers gain relevant, useful knowledge and prepare for any supply chain requirements.

Server shipments to pick up in the second half of 2019

Global server shipments are expected to regain momentum in the second half of the year, specifically for cloud-based servers and those used for data centers. Server shipments slowed down in the first quarter thanks, in part, to the nearing arrival of second-generation Xeon processors from Intel, the economic slowdown in China, and the ongoing trade war. Intel’s data center group saw sales decline 6% from last year, the most since the first quarter of 2012. Analysts expect the long-term growth of cloud-based data center servers to remain positive as demand for edge computing AI ramps up and 5G applications roll out in 2020. Read More.

Smartphone Shipments Experience Deeper Decline in Q1 2019 with a Clear Shakeup Among the Market Leaders, According to IDC

The global smartphone market challenges carried into the first quarter of 2019, marking the sixth consecutive quarter of decline. First-quarter smartphone shipments totaled 310.8 million units, down 6.6% year over year. Huawei was the only manufacturer to show growth in volume and market share. Their impressive quarter moved the company into a clear number-two spot, passing Apple and leaving them only behind Samsung. From a geographical perspective, the U.S. market experienced the most significant downturn, with Apple, Samsung, LG, and other top vendors experiencing heavy declines. According to IDC research manager Anthony Scarsella, one of the reasons for the slowdown has to do with the impending 5G explosion.

“Consumers continue to hold on to their phones longer than before as newer higher priced models offer little incentive to shell out top dollar to upgrade,” he said. “Moreover, the pending arrival of 5G handsets could have consumers waiting until both the networks and devices are ready for prime time in 2020.” Read More.

Apple chip supplier says China’s smartphone market is picking up

Bucking the global trend, one of Apple’s smartphone chip suppliers says that China’s smartphone market demand is picking up.

“The market for mobile phones was pretty soft, particularly in China in Q1, but I think from late Q1 and going forward it has started to pick up,” said Jalal Bagherli, CEO of Apple supplier Dialog Semiconductor.

Mimicking Apple’s CEO, Tim Cook, Bagherli expressed optimism for the Chinese market, leaning on recent Chinese stimulus measures coming from Beijing. In all, he believes that significant growth is expected over the next 18 months.

“The overall market remains large, but I don’t think anyone should expect huge growth until 5G really kicks in [sic] which will be probably a year to 18 months from now,” he added. Read More.

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