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Musing-Weekly Newsletter

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Some Smartphone Components in Short Supply
 
Smartphone-use lens module makers Largan Precision and Genius Electronic Optical (GSEO) have seen shipments negatively affected by short supply of key components of smartphones, especially flash memory and controller ICs, according to industry sources. Mainly because of the shortage, Largan saw December 2020 consolidated revenues of NT$4.911 billion (US$172 million) hit the lowest monthly level since August 2020 and GSEO had those of NT$1.463 billion dropping 19.03% sequentially, the sources noted. The two companies are conservative about first-quarter 2021 operations.
China-based fellow maker Sunny Optical Technology's shipments of 45.921 million CCMs (compact camera modules), mostly used in smartphones, slipped 3.4% sequentially and 23.9% on year in December.
 
Shortages of phone parts such as displays, memory and chipsets are plaguing the comeback plans of India’s handset companies Lava, Micromax and Karbon now forced to delay launch schedules and cut down on production, dealing a setback to their efforts to take on their stronger Chinese rivals. Jaina India Managing Director Pardeep Jain said that because of the shortage of components and consequent skyrocketing of their prices, Karbonn's smartphone re-entry plans have been impacted. "We are now targeting March 2021 to launch our phones in the Rs 6,000-Rs 10,000 price category. With the government's policy, we are now focusing on increasing visibility of Karbonn in the market. We have increased investments in R&D already," said Jain.

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