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How chipmakers are weathering slowing smartphone sales

How chipmakers are weathering slowing smartphone sales
08 May
12:30

Investors in global chipmakers have had a rocky ride in the last few months on worries about a slowing smartphone market, but a clamor for more video content from consumers is underpinning buoyant sales for memory-chip makers.

Indeed, the earnings reports of various chipmakers and smartphone companies in the past month tell a more interesting story beyond the cooling in phone shipment volumes: smartphone makers are cramming their devices with memory to satisfy the increasing demands of consumers.

A case in point is last week’s quarterly report from Apple. The Cupertino, California-based company said the iPhone X was the most popular iPhone model in the March quarter – the first cycle ever where the costliest iPhone was also the most sought after.

More upbeat assessments from Samsung Electronics, Qualcomm, and Franco-Italian company STMicroelectronics, have also eased concerns.

Samsung last month forecast strong sales for “high-density” chips that have more processing power and bigger storage capacity – demand that will help it weather a decline in overall smartphone shipments as consumers are willing to pay for costlier and faster models that allow them to easily watch and store large amounts of video.

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