Market News

SINGAPORE -- Singapore’s electronics shipments fell 21.8% year-over-year earlier in May, to $2.7 billion.
It was the 28th consecutive monthly drop for the sector. Shipments were down 25.6% in April.

However, according to the nation's purchasing managers’ index, manufacturing grew in May for the first time in nine months. Overall, Singapore’s exports, while still falling, narrowed their year-over-year losses in May, suggesting to some analysts that the recession is easing.

HONG KONG -- Eighty-nine percent of mainland China's electronics component distributors expect revenue to grow in 2009, forecasting an average increase of 13%; while 55% of mainland China electronics manufacturers surveyed said the economic downturn has had little or no impact on their business.

The results were revealed in the ninth Annual Electronic Components Distributor Survey conducted by Global Sources.

This year, the firm asked 326 senior managers who are working for components distributors and 1,243 senior corporate, purchasing or procurement managers from electronics manufacturing companies operating in mainland China about their current challenges and plans for the future.

Mainland China manufacturers well equipped to cope with change

The survey revealed that 55% of manufacturers want to work with local distributors in the coming months, an increase of 18% compared to last year. However, 32% still prefer to work with Hong Kong, Taiwanese and international distributors. Other results include:

  • Manufacturers order 54% of their components directly from distributors.
  • Seventy-eight percent of manufacturers plan to either increase their purchases from distributors, or keep them the same, this year.
  • They are selecting distributors based on availability of onsite engineering support (48%), reference design (45%), test service (30%) and development tools (28%).

Mainland China distributors are also shifting their strategy to grow their business. An increasing number of them are now focusing on serving medium- and small-scale manufacturers rather than larger-scale outfits.

Distributors have also implemented a number of steps to ensure the quality of their components in reaction to the demands from both the mainland China and global consumer market. These include strict supplier approval; employee training; third-party testing; purchase testing equipment and ISO certification.

ARLINGTON, VA -- The 30-day average orders of electronics components leveled in May, offering hope for the coming months.

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OYSTER BAY, NY – Despite the global recession, wireless infrastructure continues to show signs of life.
 
According to ABI Research, Brazil, Russia, India and China (BRIC) will have over 230,000 base stations added in 2010.
 
By 2014, 2G technologies (GMS, GPRS and EDGE) will comprise 30% to 50% of wireless infrastructure in the BRIC markets, says Aditya Kaul, senior analyst for ABI. The Middle East and Africa could see up to 80%.
 
The major influence on the regions’ infrastructure spending will be 3G, as the technology remains scarce in the area, Kaul adds.
 
Although the markets in China and India offer huge 3G potential, Latin America is not far behind.
 
“Let by Brazil, Latin America is growing surprisingly fast, with 3G deployments taking place ahead of most other emerging markets,” says Kaul. “Mobile WiMAX, while facing problems in North America, is seeing major activity in countries such as Brazil, Russia and India, and ABI Research expects healthy growth in these markets.”
HAMPSHIRE, ENGLAND – Over the next six years, sales of low-cost mobile handsets are expected to increase by 22% to over 700 million units, reports Juniper Research.
 
Nearly 80% of new users will come from emerging markets, with the majority coming from the Middle East and Africa.
 
Shipment volumes are expected to reach 166 million by 2014, representing 24% of sales for that year. Over the six-year period, shipments are expected to climb 54%, according to Juniper.
 
In the emerging markets, efforts are underway to lower handsets and services to under $5; benefits have already been realized in Bangladesh, Pakistan and India.
 
Companies are also developing content-driven services to encourage first-time users to continue using their devices.
SAN DIEGO – RF Industries (RFI) reported second-quarter net sales fell 22% from last year to $3.5 million.
 
For the quarter ended April 30, net income dropped 60% from $542,000 to $214,000.
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