Cloud, Smartphone Sales Boom As Asia–Tech Rises, Post-Virus
SHANGHAI/SEOUL: Smartphone sales in China are rising again as COVID-19 cases there decline and global demand for chips used in work-from-home networks surges.
All indications are that Asian tech outfits are recovering but that recovery will be slow and steady.
Samsung’s results of a better-than-expected Q1 profit set the tone yesterday, as datacentres stacked up on memory chips to deal with more virtual meetings.
Apple supplier Foxconn has reported a drop in March-quarter sales, but smaller than it had first estimated.
The recession of COVID19 cases in some European countries, a big market for Asian tech, has fuelled stockmarkets in the region.
Shares in Samsung, Foxconn and LG Electronics, maker and suppliers of smartphones and TVs, have all risen.
Meanwhile work-from-home has surged, boosting demand for cloud services, and so has the requirement for memory chips. This has allowed chipmakers such as Samsung to lower their high stockpile, which had squeezed prices for many quarters.
Smartphone sales in China are expected to edge up in the coming months as stores have reopened and companies are hopeful of strong demand for 5G-enabled phones.