Overview:

This is the excel report that shows the monthly global sell in vs sell through for handset and smartphone.

Recovery in the market hit a major roadblock in December as the surge in demand was halted by supply issues.  All markets except for China showed strong demand in sell-through. But component shortages were not relieved in December and many smartphone brands could not produce sufficient products to meet the demand.

The component shortages come mostly from PMIC and DDI. There are also some shortages in 4G, 5G chipsets, especially Mediatek, which are in high demand. Unexpected demand for laptops and tablets pushed demand for PMIC components. The automotive sector also recovered faster than expected. 5G phones require more PMICs, so the situation worsened through 2H 2020.

The final blow came from the Huawei semiconductor trade ban. Huawei procured components to sustain its market position. These included 4G, 5G chipsets and many other components including PMIC, DDI, which were already in shortage. The prospect of Huawei losing share caused other OEMs to increase orders in the expectation they would be able to win Huawei’s share – leading to over-ordering. This situation will continue in Q1 2021.

Author: Varun Mishra
Published Date: January 2021