일반산업
Performance and Risk Factors for Mobile Handset Component Makers
2009-12-30KIM, Nam-Hoon
목차
요약
Handset component makers’ profitability improved along with domestic mobile
handset makers’ performance
In spite of the downturn in the global mobile handset market, domestic handset
makers continue to grow
In 2009, global mobile handset shipments are expected to decline by 5.8% YoY, but Samsung and LG’s YTD Q3 shipments have risen by 11%.
The strong performance of domestic makers has been driven by rapid responses to changes such as new UIs (user interface) including touch screens and Qwerty inputs, and diversified product line-ups, as well as a favorable operating environment stemming from the rising exchange rate and the poor performance of major competitors.
Due to the strong performance of the end-product industry and the effects of the exchange rate, handset component makers’ operating margins continued to rise in 2008~2009. The average operating margin for 39 domestic component makers reached 6.0% in Q3.
However, component makers differ widely in terms of profitability and size, and aside from a few firms, securing capital flows for plant and equipment investment and R&D remains difficult.
Profitability is satisfactory for component makers that have high growth or
that have partners that offer economies of scale
Camera and touch screen modules offer the strongest growth, and cases and hinges
offer the highest profitability
Due to the wide variety of mobile phone applications and the spread of touch interfaces, camera and touch screen modules offer the highest growth potential, particularly as demand for low-end smart phones increases.
The profitability of camera and touch modules is above average, but hinge and case makers have the highest profitability as they can take advantage of economies of scale and a diversified client base.
Although case manufacturers can maintain stable margins by expanding into module component assembly as a result of the modulization of EMS, only a few firms with economies of scale have are actually doing so.
Unlike handset makers, component firms face growing risk due to price
competition, the declining exchange rate, and global sourcing
Growth of the end-product industry is expected to slow, and price competition will
increase cost pressures for component manufacturers
Nokia, the number 1 leading brand, is intensifying price competition in emerging markets, the exchange rate is no longer favorable, global component sourcing is growing, and the EMS system is being introduced. As a result, pressure on unit costs is growing, and it will be difficult for component makers to continue to improve profitability.
We hold a conservative view on the industry since slowing growth is likely to result in lower profitability and intensifying competition among component makers. As a result, business opportunities will be limited to firms that can offer new technologies such as touch screens or high resolution camera modules, or to hinge and case makers that have economies of scale.
handset makers’ performance
In spite of the downturn in the global mobile handset market, domestic handset
makers continue to grow
In 2009, global mobile handset shipments are expected to decline by 5.8% YoY, but Samsung and LG’s YTD Q3 shipments have risen by 11%.
The strong performance of domestic makers has been driven by rapid responses to changes such as new UIs (user interface) including touch screens and Qwerty inputs, and diversified product line-ups, as well as a favorable operating environment stemming from the rising exchange rate and the poor performance of major competitors.
Due to the strong performance of the end-product industry and the effects of the exchange rate, handset component makers’ operating margins continued to rise in 2008~2009. The average operating margin for 39 domestic component makers reached 6.0% in Q3.
However, component makers differ widely in terms of profitability and size, and aside from a few firms, securing capital flows for plant and equipment investment and R&D remains difficult.
Profitability is satisfactory for component makers that have high growth or
that have partners that offer economies of scale
Camera and touch screen modules offer the strongest growth, and cases and hinges
offer the highest profitability
Due to the wide variety of mobile phone applications and the spread of touch interfaces, camera and touch screen modules offer the highest growth potential, particularly as demand for low-end smart phones increases.
The profitability of camera and touch modules is above average, but hinge and case makers have the highest profitability as they can take advantage of economies of scale and a diversified client base.
Although case manufacturers can maintain stable margins by expanding into module component assembly as a result of the modulization of EMS, only a few firms with economies of scale have are actually doing so.
Unlike handset makers, component firms face growing risk due to price
competition, the declining exchange rate, and global sourcing
Growth of the end-product industry is expected to slow, and price competition will
increase cost pressures for component manufacturers
Nokia, the number 1 leading brand, is intensifying price competition in emerging markets, the exchange rate is no longer favorable, global component sourcing is growing, and the EMS system is being introduced. As a result, pressure on unit costs is growing, and it will be difficult for component makers to continue to improve profitability.
We hold a conservative view on the industry since slowing growth is likely to result in lower profitability and intensifying competition among component makers. As a result, business opportunities will be limited to firms that can offer new technologies such as touch screens or high resolution camera modules, or to hinge and case makers that have economies of scale.