Wednesday, December 22, 2010

Christmas demand boosts China exports

EL SEGUNDO, USA: After several months of decreases, demand related to the holiday season provided a significant boost to China’s exports of electronic products in September, according to the market research firm iSuppli, now part of IHS Inc.

Cell phone exports in September reached 63.6 million units, up 4.5 percent from August and up by double-digit percentages from the same month in 2008 and 2009.

“The 2010 holiday season is shaping up to be a very strong period for 3G smart phone demand, as buyers give new phones as gifts,” said Kevin Wang, director of China research at iSuppli. “Shipment increases are expected to continue until the end of the year, after which handset exports will fall back into their seasonal pattern of decline following the holiday surge.”

Meanwhile, desktop PC exports also began to grow in September after original equipment manufacturers (OEM) boosted their demand to ensure adequate stock on hand for Black Friday and the holidays. Total PC unit exports reached 2.4 million units, up 8 percent from the previous month and an increase of more than 400,000 units compared to September 2009.

The growth in demand for PCs also was boosted by China’s Golden Week in October, although end-market sales were not as strong as the OEMs had hoped.

PC export shipments are believed to have continued to increase in October and November—but not nearly as much as in September—as OEMs continued to stock up for the holiday season.

For liquid-crystal display TVs (LCD TV), exports from China in September inched up just 1 percent to 5.1 million units from the previous month, as a result of the OEM pricing strategy already set prior to September because of price pressure from the world’s leading competitors.

Given the prior ramp-up for Black Friday and the holiday season, iSuppli expects October to be a relatively weak month for LCD TV exports.

Source: iSuppli, USA.

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