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dylan.mcgrath
@kinnar- not sure I follow. But I think what you are trying to say is that ...
kinnar
The overall sales of the local companies will be surely higher as compared to ...
In Asia-Pac, local OEMs have Apple-like supply chain clout
Dylan McGrath
8/19/2012 12:17 PM EDT
Continuing trend
OEMs headquartered in Asia-Pacific have increased chip spending faster than those based in other regions for several years, according to IHS. Local OEMs increased chip spending in the region at a 9 percent compound annual growth rate (CAGR) from 2008 to 2011, compared to 7 percent for all global OEMs, according to IHS.
IHS said it expects chip spending in the Asia-Pacific region to increase by 9.4 percent in 2013. Chip spending by local OEMs in the region is expected to grow by 15.5 percent next year, the firm said.
"The phenomenon of domestic OEMs increasing their Asia-Pacific chip spending at a faster rate than their global rivals represents a consistent long-term trend," Robles-Bruce said. "This trend has persisted regardless of whether overall growth rates for Asia Pacific semiconductor spending have increased or decreased."
In 2012, ZTE is expected to show the highest growth in Asia-Pacific chip spending at 26 percent, followed by HTC at 23 percent and TCL at 22 percent, IHS said. Both ZTE and HTC are considered among the top smartphone vendors on a worldwide basis, with a combined share of slightly more than 10 percent, IHS said.
ZTE has been able to effectively compete in the Chinese domestic smartphones market, matching Apple's smartphone share for that area, according to IHS. ZTE has said it plans to double its smartphone shipments for this year by dramatically increasing sales to the U.S. and Chinese markets.
Despite suffering of late due to falling profits resulting from losing battles to Samsung Electronics Co. Ltd. and Apple in key markets, HTC has continued to press forward and plans to challenge the global smartphone leaders with newer handsets, IHS siad.
TCL recently reported that its handset sales for the Chinese domestic market were up by more than 200 percent year over year, IHS said. Most of this new growth was driven by the release of five new smartphone models this year, the firm said. TCL also brought to the China market in 2012 a new 7-inch tablet called the T50, IHS noted. TCL has publicly stated its goal of raising revenue by 30 percent for this year, a feat which will be based in part upon greater spending on semiconductors, IHS said.
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OEMs headquartered in Asia-Pacific have increased chip spending faster than those based in other regions for several years, according to IHS. Local OEMs increased chip spending in the region at a 9 percent compound annual growth rate (CAGR) from 2008 to 2011, compared to 7 percent for all global OEMs, according to IHS.
IHS said it expects chip spending in the Asia-Pacific region to increase by 9.4 percent in 2013. Chip spending by local OEMs in the region is expected to grow by 15.5 percent next year, the firm said.
"The phenomenon of domestic OEMs increasing their Asia-Pacific chip spending at a faster rate than their global rivals represents a consistent long-term trend," Robles-Bruce said. "This trend has persisted regardless of whether overall growth rates for Asia Pacific semiconductor spending have increased or decreased."
In 2012, ZTE is expected to show the highest growth in Asia-Pacific chip spending at 26 percent, followed by HTC at 23 percent and TCL at 22 percent, IHS said. Both ZTE and HTC are considered among the top smartphone vendors on a worldwide basis, with a combined share of slightly more than 10 percent, IHS said.
ZTE has been able to effectively compete in the Chinese domestic smartphones market, matching Apple's smartphone share for that area, according to IHS. ZTE has said it plans to double its smartphone shipments for this year by dramatically increasing sales to the U.S. and Chinese markets.
Despite suffering of late due to falling profits resulting from losing battles to Samsung Electronics Co. Ltd. and Apple in key markets, HTC has continued to press forward and plans to challenge the global smartphone leaders with newer handsets, IHS siad.
TCL recently reported that its handset sales for the Chinese domestic market were up by more than 200 percent year over year, IHS said. Most of this new growth was driven by the release of five new smartphone models this year, the firm said. TCL also brought to the China market in 2012 a new 7-inch tablet called the T50, IHS noted. TCL has publicly stated its goal of raising revenue by 30 percent for this year, a feat which will be based in part upon greater spending on semiconductors, IHS said.
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nc3
8/19/2012 3:12 PM EDT
This is an interesting market factor in mobile.
Local OEMs/Samsung/Apple all have dominant position over chip suppliers. Net effect profit margins are NOT like the PC space where Intel holds power over OEM/Samsung/Apple.
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kinnar
8/20/2012 3:43 PM EDT
The overall sales of the local companies will be surely higher as compared to the known giants, but at the same time local companies will be paying more price as compared to the known giants,and buying conditions as will not be stringent. These are all the factors increasing local sales.
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dylan.mcgrath
8/20/2012 6:10 PM EDT
@kinnar- not sure I follow. But I think what you are trying to say is that companies like HTC, ZTE and TCL are increasing their chip buying in percentage terms from a lower base than Apple, which is projected to increase from $25 billion to $28 billion. At some point, sheer size gets in the away of the growth rate.
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