News briefing 

        

According to data released by China’s Academy of Information and Communications Technology (CAICT), smartphone sales in April were 26.97 million units in China, which translates to a year-on-year decline of 33.9%. Also, sales of 5G mobile phone were 21.42 million units, a year-on-year growth of 30.8%, which highlights a decline of 22.1% from that of March.

 

Impact analysis 

        

As far as YoY is concerned, the sharp decline of 33.9% in sales in April can be attributed to the high base period of delayed shipments in the first quarter last year, yet there was a 23.5% decline according to the MoM. 

Although 5G smartphone sales have grown by 32% in terms of YoY, a 22.1% decline was experienced according to the MoM. Based on experience, this data has shown that the smartphone market in China has cooled down significantly in the first month of the second quarter. 

 

Since 5G mobile phones accounted for 79.4% of the total smartphone sales in April, it would, therefore, suggest that this wave of qualitative changes brought about by the increase of 5G penetration rate has already stepped into the final stage. Furthermore, the smartphone market in China is vitally important for circuit boards in Taiwan, especially 5G mobile phones, as it is one of the key factors that sustained the growth in 2020. Hence, the data of terminal sales on this occasion implies that the growth of output value for circuit boards in the second quarter will be held back.