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Business prospects for handset part and component suppliers in the second half of 2017 are positive, driven by traditional peak season effects in the third quarter and new models launched by brand vendors for the latter half of the year, according to sources from upstream component suppliers.
Efforts by some vendors, particularly China-based ones, to move their supply chains for parts and components to emerging markets such as India are also expected to create new business opportunities for component makers, said the sources.
Most component suppliers have seen a pick-up in orders from China-based smartphone vendors as inventory levels in China have been brought down following continued adjustments over the past two quarters, said the sources.
Recent launch of new models, including Xiaomi Technology’s Mi 6 and Max 2, Gionee’s S10, Oppo’s R11 and Meizu’s E2, is also instrumental to stir up demand for parts and component, the sources added.
Meanwhile, Oppo is inviting its supply chain makers to join its overseas expansion projects by setting up production lines in India, indicated the sources, noting that about seven companies, including Foxlink, have been approached by Oppo for going to India.
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