Smartphones are often considered the most vulnerable among all electronic devices due to the massive scale of the market. The supply chain factory had originally expected that 5G should march into commercialization this year, which should trigger a frantic wave of change for smart-phones. However, the pandemic has hit the terminal consumer hard. Therefore, it is believed the market situation won't improve much this year, and it is why operators are aggressively promoting the proportion of applications other than mobile phones.

 

Flexium, the supply chain of Apply, announced in the second half of last year that its terminal applications will be actively deployed on end-device products other than mobile phones, such as laptops, tablets, wearable devices, etc, in addition to the persistent layout for MPI and LCP high-frequency antenna materials in 2020. Given the proportion of the products with the company in the first quarter, it is found that the proportion of mobile phones dropped by more than 10%, while other products have increased significantly, pushing up its revenue in the first-quarter revenue to grow not only by 6% year-on-year but also have a two-fold increase in profits in comparison to the same period in the previous year.

 

Flexium said that the layout for diversified products already begun long before the pandemic. Currently, it seems that the established plans have not changed, but it has indirectly proved that the strategic direction is correct as viewed under the influence of the pandemic. The layout for diversified products has helped the company to largely increase its resistance to pressure.  

 

Although the global PCB leader, Zhen Ding, was suspended from production due to the pandemic and operations were slightly met with obstacles in February, the revenue in March and April had increased steadily. This was attributed to the subsequent resumption of work, injection of orders, and more manpower had to be filled to accommodate order demands. As noted by Zhen Ding, there is no way that it can rely on a single industry to support operation for its range of products both far and wide. Judging from the current situations, there is still a continuous order momentum from American mobile phone customers; nonetheless, some results are, indeed, witnessed regarding the strategy to increase the proportion of non-mobile phones, like laptops, tablets, and game consoles that have grown significantly because of otaku economy or the need for pandemic prevention as they achieve rather favorable contributions.

 

The institute investors stated that Zhen Ding is rather aggressive in the development of new products and new customers therefore it continues to move towards a full range of product line layouts. For instance, it is working towards high-frequency antenna flexible boards, optimizing product structure of flexible board, expanding the production capacity for SLP to increase market share, and enlarging the scale of IC carrier, etc. In the long run, its operational is expected to grow. (News source: Commercial Times)