Global sales of consumer information technology electronics such as smartphones, PCs and TVs are expected to rebound in 2024, fueling hopes for a recovery in earnings of South Korean parts makers such as LG Display Co. and Samsung Electro-Mechanics Co. Global smartphone shipments were projected to grow 3.
4% to 1. 2 billion units next year, according to the latest report of Counterpoint Research, a technology industry analysis firm. Other research firms such as Canalys and IDC Corp.
expected the shipments to increase by 5% and 3. 5%, respectively in 2024. The shipments of the mobile phones in 2023 were estimated to fall 5% to a decade low of 1.
16 billion units, Counterpoint Research said, as higher interest rates amid sustained inflationary pressure hurt consumer sentiment. The supply of the iPhone 14 series also fell as production in China declined late last year due to the COVID-19 lockdown of Zhengzhou where Foxconn operates the world’s largest manufacturing complex for Apple smartphones. In 2024, global smartphone sales were expected to rebound on new models equipped with on-device artificial intelligence, a new generation of deep learning technology, analysts said.
Samsung Electronics Co. , the world’s largest smartphone maker by volume, is scheduled to launch with on-device AI features on Jan. 17, 2024.
The outlooks for the PC and TV industries are also bright. The global PC market is set to return to growth in 2024 with shipments forecast to rise 7. 6% to 267.
3 million units, Canalys said in its latest report. The world’s PC shipments were estimated to drop 12. 4% in 2023, the research firm said.
“The impact of AI on the PC industry will be profound, with leading players across OEMs, processor manufacturers, and operating system providers focused on delivering new AI-capable models in 2024. ,” said Canalys Analyst Ben Yeh, referring to original equipment manufacturers. “These initiatives will bolster refresh demand, particularly in the commercial sector.
” Other research firms also expected a recovery in PC shipment next year. Gartner Inc. predicted a 4.
9% growth, while IDC and TrendForce Corp. forecast increases of 3. 7% and 3.
2%, respectively. Global TV shipments were expected to rise 2. 9% to 209.
4 million units in 2024 with those of high-end organic light-emitting diode (OLED) models up 16. 1% to 6. 5 million units, according to Omdia.
Such optimism fanned hops for better earnings for South Korean parts makers, analysts said. LG Display, the world’s top manufacturer of large-size OLED panels, is likely to turn to the black with an operating profit of 102. 3 billion won ($77.
8 million) in 2024, analysts’ consensus forecast showed. That came as the global display market was expected to grow 5. 4% to $122.
8 billion, according to the Korea Display Industry Association. LG Display, whose top shareholder is global home appliance giant LG Electronics Inc. , was estimated to suffer a loss of 2 trillion won in 2022, extending its deficit-making streak to three years in a row, analysts said.
Operating profits of Samsung Electro-Mechanics, an electronics component maker, and LG Innotek Co. , a major camera module supplier for Apple iPhones, are expected to jump 42. 5% and 31%, respectively, to 947.
2 billion won and 1. 1 trillion won, analysts said. Ik-Hwan Kim at.
From: kedglobal
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