Smartphone, Tablet Pile-up May Affect Suppliers in Q1, 2013

Vendors are said to have been too aggressive with recent orders for smartphones and tablets, which may negatively affect suppliers during 2013's Q1.

DigiTimes' unnamed industry sources suggested that eager smartphone and tablet vendors may have caused a pile-up before 2013 arrives, subsequently leaving the first-quarter in 2013 a jeopardy for a number of suppliers in terms of seeing orders reduced.

The Taiwan-based site said the issue is particularly bad in China. Orders began to show signs of decrease in November, with original device manufacturers in the Far East yet to commence building up component inventories as a result.

Supply chain companies are now "conservative about their business outlooks for the first quarter of 2013 as demand for [integrated circuit] parts has been affected" by the back up in question.

Smartphone sales have been one of 2012's highlights, with the tablet market showcasing an equally impressive commercial performance. Smart-connected devices, which includes both such devices, shipped 303.6 million units during 2012's Q3 alone.

 

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  • Anonymous
    how can the big corps be so blind................smartphones/tablets are nice and cool but they r still glorified TOYs. Many ppl have smartfones and tabs already, and one still cant do serious work on tabs................and here we have hardware manufacturers trying to forcefully usher in the "post-pc" era.

    Man.....and i thought only Ballmer was clueless.
    14
  • Other Comments
  • Anonymous
    how can the big corps be so blind................smartphones/tablets are nice and cool but they r still glorified TOYs. Many ppl have smartfones and tabs already, and one still cant do serious work on tabs................and here we have hardware manufacturers trying to forcefully usher in the "post-pc" era.

    Man.....and i thought only Ballmer was clueless.
    14
  • SirTrollsALot
    I wouldn't be surprised if the country's government in question has its hand in this for some sort of trade leverage.
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  • Gundam288
    SirTrollsALotI wouldn't be surprised if the country's government in question has its hand in this for some sort of trade leverage.

    I wouldn't be surprised ether.

    What pops up in the back of my head when I see this is China trying to boost it's growth rate above 5% by pushing Chinese companies to make a sale by exporting more. (as I understand it, a lower than 5% growth rate in China is almost like a death sentence, politically anyway.)

    VIA: http://en.wikipedia.org/wiki/Economy_of_the_People%27s_Republic_of_China#2010.E2.80.93present

    Quote:
    From 2011 onward, however, China has been experiencing a slowing of its growth that throws all of the above calculations into doubt. Ray Dalio, founder of the worldest largest hedge fund, told the Council of Foreign Relations that he foresaw Chinese GDP falling to 4-5% due to failure to switch successfully from the export-driven model to more consumption. In 2012, Amnesty International reported that forced evictions that resulted from a construction boom caused by excessive stimulus spending were a serious threat to China's social and political stability.


    Granted it's wikipedia, but the parts in bold stuck out to me as China spending and trying to re-coup it's losses by exporting more after I read this article.
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