Market Watch
EDITED BY CHELSEY DRYSDALE
Report: Companies Shipping 5G Phones to Spur Sales
AUSTIN, TX Many smartphone manufacturers are offering 5G handsets in a bid to increase mobile phone sales, says TechSearch International. Several 5G-compatible smartphones are in mass production, and more are scheduled for release this year.

Smartphone sales have stagnated, so OEMs and carriers are pushing 5G development and deployment, with the hope customers will be enticed to upgrade their phones, according to the firm. These early 5G phones are primarily designed to enhance 4G LTE by adding sub-6GHz frequency spectrum. Support for the millimeter-wave version of 5G, which many consider to be the “true” 5G, is limited, as rollout of the technology is still in its infancy.

PC Cycles
Trends in the U.S. electronics equipment market (shipments only).
 
%CHANGE
 
MAY
JUNE
JULY
YTD%
Computers and electronics products
0.4
-1.2
0.2
4.9
Computers
-4.5
-6.7
-0.5
-19.0
Storage devices
-5.6
-4.2
1.5
21.3
Other peripheral equipment
1.8
0.5
-4.8
6.0
Nondefense communications equipment
-0.3
1.0
0.6
11.7
Defense communications equipment
8.0
12.1
-3.2
6.4
A/V equipment
7.7
0.0
2.4
39.1
Components1
0.7
1.6
-1.3
3.1
Nondefense search and navigation equipment
-0.9
-1.6
0.5
3.8
Defense search and navigation equipment
-3.0
-1.3
1.3
3.2
Medical, measurement and control
-0.1
-3.2
1.3
1.6
rRevised. *Preliminary. 1Includes semiconductors. Seasonally adjusted.
Source: U.S. Department of Commerce Census Bureau, Sept. 5, 2019
Hot Takes
  • Japanese PCB fabricators’ sales fell 6.9% year-over-year in the first half to 219.79 billion yen ($2.06 billion). Sales of flex circuits fell 28.7% from a year ago. (JPCA)
  • Worldwide semiconductor manufacturing equipment billings in the second quarter fell 20% from a year ago to $13.3 billion. (SEMI)
  • Server shipments declined 9.3% year-over-year globally to fewer than 2.7 million units during the second quarter. (IDC)
Key Components
 
MAR.
Apr.
MAY
JUNE
July
Semiconductor equipment billings1
-24.9%
-28.5%
-23.6%
-18.4%r
14.5%p
Semiconductors2
-13%
-13.7%
-14.8%
-16.5%r
-15.5%r
PCBs3 (North America)
1.00
1.02
0.99
1.00
1.00
Computers/electronic products4
5.35
5.35
5.39
5.46r
5.43p
Sources: 1SEMI, 2SIA (3-month moving average growth), 3IPC, 4Census Bureau, ppreliminary, rrevised
Metals Index
LME Tin
LME Copper
LME Lead
COMEX Silver
  • PCB manufacturers in Austria, Germany, and Switzerland posted a 12.8% drop in second quarter sales year-over-year and 10.6% sequentially. Overall first-half sales were down 10%. (ZVEI)
  • Worldwide smartphone assembly shipment volumes in the second quarter were up 11.9% sequentially, with total shipments of 332.6 million. (IDC)
  • DRAM sales are forecast to drop 38% this year to $62 billion. (IC Insights)
US Manufacturing Indices
 
APR.
MAY
JUNE
JULY
AUG.
PMI
52.8
52.1
52.7
51.2
49.1
New orders
51.7
52.7
50.0
50.8
47.2
Production
52.3
51.3
54.1
50.8
49.5
Inventories
52.9
50.9
49.1
49.5
49.9
Customer inventories
42.6
43.7
44.6
45.7
44.9
Backlogs
53.9
47.2
47.2
43.1
46.3
Sources: Institute for Supply Management, Sept. 3, 2019