Japanese Murata warns of a further decline in demand for smartphones
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The Japanese company Murata Manufacturing, one of the leading manufacturers of components for smartphones, said that the decline in demand for smartphones will continue into 2023. This is primarily due to the strong decline in sales in China. As stated in an interview Bloomberg company president Norio Nakajima, last year Murata expected a significant recovery in demand in this market this year, but this did not happen, and there is no reason to expect a significant improvement next year.
Murata manufactures many key components for smartphones, including the iPhone, Samsung smartphones and gadgets from Chinese manufacturers. The company’s shares have fallen 20% since the start of the year as many of its customers, especially in China, have seen significant supply cuts.
“The momentum will not return for at least fiscal 2022, and the situation before the next period does not seem positive. Demand for consumer electronics has dropped a lot, and Chinese manufacturers are not doing very well,” said Mr. Nakajima. According to him, while before people were willing to buy smartphones even with a small upgrade, in a more difficult economic environment, including rising interest rates, “people will wait longer before upgrading (smartphone.—”b”)”. Mr. Nakajima also noted that companies’ profits could be negatively affected by rising prices for some components, in turn caused by an increase in energy prices.
By forecasts research firm Gartner, global smartphone sales will decline this year by more than 7%, to 1.46 billion, and will be 150 million less than the company’s earlier forecast.
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