Consumer Electronics Industry Shows Signs of Recovery and Improvement for 2023
Many consumer electronics companies are forecasting promising results for 2023 as industry experts note a clear trend of recovery, although the sustainability of this upward trajectory remains uncertain. After a challenging period over the past two years, the consumer electronics market is showing signs of resurgence, buoyed by factors such as market demand recovery, artificial intelligence (AI) empowerment, and innovation in hardware.
According to data from Tonghuashun, several listed companies in the consumer electronics industry have disclosed performance forecasts, with the majority expecting positive outcomes. For instance, glass protective screen manufacturer Xinhao Optoelectronics predicted a significant year-on-year increase in net profit for 2023, signaling a turnaround for the company. Similarly, industry chain players such as Luxshare Precision and Transsion Holdings anticipate substantial increases in net profits for the year.
Furthermore, intensive institutional research has been focused on the consumer electronics industry, with a total of 53 surveys conducted on 24 A-share companies in the sector. This indicates growing interest and confidence in the industry’s prospects, with notable attention given to companies like Yida Information, Xingrui Technology, and Tonglian Precision.
The improved performance of listed companies in the industry mirrors the overall recovery of the consumer electronics market. Recent data from the China Academy of Information and Communications Technology revealed a significant year-on-year increase in mobile phone shipments domestically, while global market research firms predict growth in smartphone and personal computer (PC) shipments for 2024.
Moreover, the application of AI in consumer electronics has been identified as a key driver of the industry’s recovery. Major technology companies have been actively integrating AI technology into their products, with smartphone manufacturers launching AI-equipped devices and industry giants exploring AI applications in wearable devices and PCs.
Despite these positive developments, industry experts and institutions remain cautious about the sustainability of the recovery. While technological innovations and market cycles are expected to fuel industry growth, the impact of macroeconomic conditions and the progress of AI applications on long-term recovery remains uncertain. Additionally, challenges such as declining consumption power and the maturity of products pose ongoing risks to the industry’s sustained improvement.
Analysts, therefore, recommend a prudent approach to investing in the consumer electronics industry, with a keen focus on companies that demonstrate resilience and adaptability to evolving market dynamics. As the industry continues to show signs of improvement, it will be essential to monitor the development of AI-driven applications and their impact on consumer demand in the coming years. (Reporter Li Jing)