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first_img Samsung Electronics lowers the production of mid-range and low-end smartphones in the fourth quarter, as the supply of PCB raw materials is hindered

According to a report by ZDNet Korea on October 15, Samsung Electronics has lowered its production plan for mid-range and low-end smartphones in the fourth quarter. The reasons include rising prices of memory chips and disruptions in the supply of glass fiber used in PCB raw materials CCL. Japan's Nitto Denko is shifting more production capacity towards T-glass for AI semiconductors, reducing the output of E-glass for smartphone PCBs, leading to supply shortages and price increases. E-glass is used in semi-cured sheets for smartphone motherboards HDI and RFPCB.The report states that after the rise in storage prices increased manufacturing costs, Samsung reduced orders for related components. Models like the Galaxy A have lower profitability, making it difficult to significantly increase production. This year, the prices of basic mid-range models have risen by more than 100,000 Korean Won compared to the previous generation. The outlook for component orders communicated to partners for the fourth quarter corresponds to an annual smartphone shipment volume of just over 230 million units, which is below the component industry's expectation of 240 million units and represents a decrease of 20% to 30% compared to before the Mid-Autumn Festival holiday. Plans for the mobile business next year have not been shared with partners as in previous years.The monthly production outlook for the fourth quarter in mid-September was 14.3 million units in October, 9.5 million units in November, and 7.6 million units in December, totaling 31.4 million units. This was adjusted at the beginning of this month to 9.9 million units in October, 7.6 million units in November, and 6.7 million units in December, totaling 24.2 million units, a reduction of 23%. While the production of mid-range and low-end models has been lowered, the shipment plans for flagship models like the Galaxy S27 at the beginning of next year remain at a high level, and the shipment volume for foldable phones is also planned to increase. The MX and Network divisions reported a loss of 735 billion Korean Won in the second quarter, with the securities industry projecting an annual loss of 400 billion Korean Won.

Next week, the U.S. non-farm payroll and core PCE will be announced, and Micron will release its earnings report after the market closes on Wednesday

Next week's macro data focus will be on Friday's U.S. non-farm payroll report, including non-farm employment population, unemployment rate, and average hourly wage, which are directly related to the Federal Reserve's interest rate path and are important employment data ahead of the October monetary policy meeting. According to Beijing time, on Wednesday at 20:15, the U.S. September ADP employment figures will be released, and at 20:30, the U.S. August core PCE price index year-on-year will be announced; on Thursday at 20:30, the number of initial jobless claims in the U.S. for the week ending September 26 will be released, and on Friday at 20:30, the U.S. September seasonally adjusted non-farm employment population and unemployment rate will be published.Regarding officials' speeches, on Thursday at 16:00, Bank of England Governor Bailey will speak, and at 21:30, European Central Bank President Lagarde will speak. Starting from early Wednesday, Federal Reserve officials will have a series of public activities; 2027 FOMC voting member and Chicago Fed President Goolsbee, along with 2028 FOMC voting member and St. Louis Fed President Bullard, will speak in succession, and FOMC permanent voting member and New York Fed President Williams will deliver a keynote speech at the University at Buffalo. On Thursday, Federal Reserve Governor Cook, Minneapolis Fed President Kashkari, and Richmond Fed President Barkin will speak in turn, and on Friday, Williams and Dallas Fed President Logan will still have public activities. In terms of U.S. stocks, Micron will release its earnings report after the market on Wednesday, and Nike will announce its latest quarterly earnings report on Thursday, with both companies corresponding to storage chips and consumer demand.

first_img Acer Chen Junsheng: Memory is no longer in short supply, only 2 types of PC components are in tight supply

Acer Chairman Chen Junsheng stated on the 19th that there is no shortage of memory, as suppliers in mainland China are continuously releasing quantities, acting as price destroyers. The contract prices are currently experiencing high fluctuations, with chaotic ups and downs. Some components like LPDDR5 or DDR5 9600 paired with N1 or N1X are still in short supply, but more common components like DDR4 are in oversupply. Currently, there is also no shortage of CPUs, except for certain low-priced licensed models from Microsoft, such as those with Small Core specifications, which are in tight supply.Chen Junsheng pointed out that the price increases for key components this year are unprecedented, with customers going from complaining to scrambling for goods. Acer is increasing its inventory of low-priced components in response, facing pressure to raise PC prices each quarter, with different products still seeing price increases of 5% to 20% in the fourth quarter. The three major memory suppliers have expressed optimism about price increases until 2027, but the unlimited production capacity released by mainland China means that sustained price increases are unlikely.He expects that by 2027, Acer's costs for SSDs and memory will decline compared to this year, with a chance for prices to stabilize in the second half of next year. There may still be opportunities for price increases in the first quarter of 2027, but the increases should become narrower. The expansion of semiconductor production is expected to begin in mid-2027, after which prices may peak and enter a stable phase.
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