Market Trends of smartphone mlcc Industry
The demand for 5G smartphones is expected to decrease the sales of 4G smartphones
- MLCCs are important for electronic components in smartphones as they filter and stabilize power supply to several components, such as processors and memory, reduce noise and interference, and improve signal quality. A high-end smartphone uses 800-1,000 MLCCs, while low or mid-range devices require 300-600 per unit.
- The sales of 4G smartphones witnessed a Y-o-Y drop of 36.37% in 2020. The supply and demand imbalance in the smartphone market was affected by the COVID-19 pandemic. Weakened development of next-generation products and delayed shipments of existing products have adversely hit the smartphone manufacturing sector since China is the global manufacturing center for most of these components and devices. The surge in mobile internet usage in mainland China, driven by the increasing adoption of smartphones and the widespread availability of 4G, has propelled the country's advancement up the digital-society value chain. The sales witnessed a further decline of 12% in 2022, from 790.24 million units in 2021 to 691.95 million units in 2022. The introduction of 5G technology is driving consumers to upgrade their smartphones so they can benefit from enhanced performance and quicker speeds.
- 4G smartphones, although not as advanced as 5G devices, still require MLCCs that can handle the demands of high-speed data transmission and multimedia applications. MLCC requirements may be slightly lower compared to 5G smartphones, but MLCCs remain critical for power management, signal conditioning, and noise reduction in 4G devices.
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The growing integration of AR and VR technology is expected to propel the sales of 5G smartphones
- 5G smartphones are at the forefront of technological advancements, offering faster data speeds, lower latency, and enhanced network capacity. These smartphones require MLCCs with higher capacitance to support the increased data throughput and power demands associated with 5G connectivity.
- The integration of MLCCs enables efficient power delivery, noise suppression, and voltage stabilization, ensuring optimal performance of 5G smartphones. Approximately 600-1,400 MLCCs were used in each 5G smartphone during 2019-2022. The miniaturization of MLCCs is helping manufacturers in developing a high-performing, multipurpose, and easy-to-use 5G smartphone with the ideal size.
- The sales of 5G smartphones rose by 25% in 2022, from 604.63 million units in 2021 to 757.50 million units in 2022. The demand for 5G smartphones is expected to increase as consumers switch and upgrade to smartphones with the latest technology. The popularity of 5G devices is on the rise, prompting chipmakers to encourage smartphone manufacturers to integrate 5G chips into their new product range.
- The advent of 5G technology allows smartphone manufacturers to improve the user experience. With lower latency and faster network speeds, 5G enables new possibilities, such as virtual reality (VR) and augmented reality (AR), for enhanced gaming experiences. As the number of functions installed in a smartphone increases, the number of installed MLCCs is also expected to increase proportionally.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- High-performance features like multi-cameras and budget-friendly models contribute to the growth of Android smartphones
- Premium smartphones are increasing the ASPs of smartphones
- 5G mobile connections are increasing due to the rising demand for high-speed internet
- The increasing technological advancements are boosting the demand for iOS smartphones
- Increasing internet penetration and the rise of digital services are driving the demand for smartphones
