Main Viewpoints of Industry

In May, the order-to-delivery ratio (BB) of North American semiconductor equipment manufacturers was 1.08, which was higher than 1 for five consecutive months. As a forward-looking indicator of the industry prosperity, the industry prosperity has been warming up for 5 consecutive months, and the demand in the field of smart mobile terminals has been strong since this year. The active layout of advanced manufacturing processes in the global wafer generation factories is the main factor for the recovery of the industry prosperity.

Influenced by short-term inventory adjustment, smartphone shipments in June are still at a low ebb. With the arrival of the July consumer season, smartphone inventory adjustment gradually ends. In addition, Apple, Samsung and other important new products will be launched in the third and fourth quarters. We are optimistic that the recovery of the smartphone market will begin in July.

The trend towards parity of smartphones is becoming more and more evident. According to Strategy Analytics data, the global average price of smartphones in the first quarter is 299 dollars, which is much lower than 342 dollars in the first quarter of 2011 and 333 dollars in the first quarter of 2012. This confirms our long-standing judgment. The rapid increase in penetration of smart phones in emerging markets such as mainland, India, Brazil and Russia is the main factor for the development of smart mobile terminals towards parity. In addition, we also analyzed the trend of tablet parity in the medium-term strategy. It is suggested that we continue to focus on Lenovo, Huawei, Cool, ZTE and other smartphone industry chains. We hope that smartphone and tablet manufacturers will benefit from the trend of low-cost smartphone and tablet computers, with stronger cost control capability, lower BOM cost and reasonable profit margin. Touch screens, battery modules, mobile phone case and other areas are under great pressure to reduce prices. Enterprises with high-quality customer resources will grow faster than the average growth rate of the industry.