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Demand for Finished Products Rebounding in Europe/US/ China Faster Than in Emerging Economies 
June 14, 2020

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Mizuho Securities reports that beginning in the middle of April (when major cities in Europe and the US started lifting lockdowns) sales of finished products for major consumer electronics, such as TVs, PCs, and smartphones, recovered faster than expected. Sales of TVs seem to be leading the trend. By region, the rebound in Europe, the US, and China has exceeded the slump in emerging countries with large populations (India, Brazil, Russia, others), which is creating trends that are more positive than expected, strong due to: 
 

• investments for the house (WFH, education, recreation);
• temporary salary increases (one-off payments, unemployment handouts), and we think that some money saved on restaurants and travel may have also contributed. 

 
A recovery in demand from emerging countries is not expected in the near future. 
 
TV panel demand for LCD panels should improve as prices may bottom out by August, due to an increase in negotiations from TV brands. Specifics in terms of 2020 supply/demand:
 

• Hubei Province normalized in 2nd half of April
• Smartphone Down 10% in volume
• TVs projecting 10% Y/Y decline
• Large OLED and 65” LCD TV demand stalled, but Samsung Visual upbeat
• PC – 5% Y/Y decline
• Tablet – Flat

From Mizuho Securities