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China's mobile handset and LCD TV exports declined unexpectedly in between its high growth period,
as the mobile handsets made in the country were negatively impacted by a government investigation and the televisions took a hit due to weak demand and rising inventory, according to different world market research companies.
Exports of mobile handsets in recent years amounted to 59.5 million units, down 1 percent from 60 million in May. Meanwhile, total LCD TV export shipments fell by 3 percent, declining to 4.3 million units, down from 4.4 million the previous month. Channel inventory in June rose compared to May because of weaker-than-expected sales.
Driven by strong global LCD TV market demand, China's LCD TV export market soared during the first half of 2010. By the end of June this year, total export shipments had grown by 50 percent compared to the first half of 2009.
However, LCD TV inventories in the channel piled up after China's Labor Day on May 1, various analysis reports based on industries of different world market review companies on China indicates so. Furthermore, LCD TV OEMs placed fewer orders to Original Design Manufacturers (ODMs) in July this year because of the less-than-optimistic news regarding demand in the United States and Europe.
Meanwhile, China's cell phone exports were impacted by the government's investigation into the gray handset market in June this year. Total shipments of gray market China handsets in June this year fell 25 percent from May. End-market demand also slowed in the emerging markets as Average Selling Prices (ASPs) fell during the first half of the year.
Other products suffering decline in the exports in recent years includes items like digital still cameras and air conditioners.
Products like strong notebooks are continuing to show export growth in June included notebook and desktop PCs, car navigation systems and satellite set-top boxes. Notebooks were the standout segment in June, with shipments rising 17 percent to reach 16.8 million units, up from 14.2 in May this year, despite weak end-market sales of OEMs to notebook Original Design Manufacturers (ODMs).
However, given the strong signs of 2010 so far for China exporters in this segment, a bad month had to come sooner or later. And such weak end-market demand is bound to catch up to the country's notebook exporters, as different market research companies anticipates in this year’s July shipments to be either flat or show a slight decline, China market analysis shows.
The big winners in the China notebook export market continue to be big companies and manufacturers of the likes of Quanta and Compal, both of which increased shipments in June of this year. Quanta saw its shipments in June rise to 5.1 million units, up from 4.6 million units in May. Compal expanded its notebook shipments to 3.5 million units in June, up from 2.6 million units in May, this year.
