China is expected to become the world's first smartphone market to recover from the impact of a new coronavirus epidemic, a new report said today.
The report said that the early quarterly transcripts of Asian technology companies showed that as the number of new coronavirus infections dropped sharply in China and the global demand for chips from home office networks surged, China ’s smartphone sales will rise again. Technology companies are preparing for a slow but steady recovery.
"Within Asia, developing signs of industry returning to work tell us that production in China will be the first part of the economy to lift off," Stephen Innes, global chief market strategist at forex trader Axicorp, said in a note.
As a smartphone and TV manufacturer, Samsung's stock price rose by 2% on Tuesday. Foxconn's stock price rose by 1.4%.
South Korean TV and mobile phone manufacturer LG Electronics said its operating profit in the first quarter may soar 21%, after which the company's stock price rose nearly 7%.
However, not all of this can be attributed to the needs of smartphones. Samsung, in particular, has benefited more from sales of data center chips.
The surge in the number of people working at home has boosted the demand for cloud services and also led to an increase in demand for memory chips. This allows chipmakers such as Samsung to reduce its high inventory. The extremely high inventory has caused its chip prices to be lowered in many quarters.
"The memory chip market is on the verge of a rebound ... especially the server DRAM memory chip market is rebounding faster than expected following a downturn as data center customers are buying up memory chips to build up their infrastructures," said Song Myeong- sup, an analyst at HI Investment & Securities.
But with the reopening of Chinese stores-including all Apple stores in China-and the launch of more 5G phones, many Chinese companies have an optimistic mood that the Chinese smartphone market may be the first in the world to start from the new crown The market recovered from the impact of the virus epidemic.
