Citigroup remains cautious on FY22 outlook for global smartphone supply chain

LG Innotek Co

14/09/2022 14:16

** Citigroup remains cautious on FY22 outlook for global
smartphone supply chain; says promotions and de-stocking of
inventory could pressure margins, particularly for upper-stream
component makers
    ** "Margin pressure on clearance would be an overhang on the
Android supply chain, and iPhone sales will need to be watched
despite a resilient build plan" - Citi
    ** Brokerage says destocking of inventory remains main theme
in H2 2022
    ** With escalated channel inventory, promotions in Q4 should
"help sell-through but not necessarily sell-in" and Citi expects
some brands will finish destocking after promotion season in Q4
    ** "Shipment could continue to decline and then neutralize
in 1H23 before returning to positive growth in 2H23, making
overall shipment flat YoY in 2023" - Citi
    

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))