Smartphone RF Front-end Market Revenues Down 14% QoQ in Q2 2022 - Counterpoint Research

• In Q2 2022, the wide smartphone RF front-end marketplace revenues were down 14% QoQ and 6% YoY.
• Against the marketplace decline, Qualcomm and Broadcom delivered affirmative YoY gross maturation astatine astir 7.6% and 12.2%, respectively.
• We person revised the 2022 gross maturation projection for the smartphone RF front-end constituent marketplace to a debased azygous digit amid an unfavorable macro environment.

In Q2 2022, the wide marketplace gross for divers smartphone-related RF front-end (RFFE) components, chiefly including RF PA (power amplifier) integrated modules, receiving modules and discrete components specified arsenic filters, switches, LNAs (low-noise amplifiers) and powerfulness trackers, was down 14% QoQ and 6% YoY, according to Counterpoint’s Smartphone RF Front-end Tracker.

Global smartphone shipments were down 9% YoY successful Q2 2022, and the maturation complaint is expected to autumn further successful Q3 2022. Against the backdrop of specified rising uncertainties, OEMs, peculiarly successful the Android camp, became much blimpish successful managing inventory and their destocking efforts led to important bid reductions for wide RF components, interrupting the secular maturation inclination of the smartphone RFFE sector. In this context, large vendors showed a mixed income performance.

Smartphone RFFE Market Revenue Decreased 6% YoY successful Q2 2022

Source: Counterpoint RF Front-end Tracker, Q2 2022

Qualcomm managed to present a 7.6% YoY gross summation for RFFE components, gathering connected its enactment successful providing high-performance mobile platforms for premium smartphones. In Q2 2022, the shipments of flagship models powered by the Snapdragon 8/8+ Gen 1 exceeded 10 cardinal with a overmuch stronger beingness (share climbed up to astir 79%) successful the Samsung Galaxy S22 family. This momentum volition continue, resulting successful robust request for the paired 4G/5G PA-integrated and mmWave modules. Besides, we saw the spreading adoption of Qualcomm’s diverseness person modules crossed platforms astatine the outgo of muRata.

Skyworks’ RFFE revenues were astir level YoY, with much publication from Apple and Samsung (the apical 2 clients were estimated to relationship for astir 90% of Skyworks’ Mobile gross of $764 cardinal successful Q2 2022) but little vulnerability to China-based OEMs (<10% of Skyworks’ Mobile revenue), arsenic its merchandise portfolio is positioned towards the mid-to-high tier wherever determination is simply a precocious level of customization requirements.

Qorvo’s smartphone RFFE revenues decreased 11.3% YoY successful Q2 2022 owed to reduced smartphone accumulation crossed its Android clients (collectively contributing to astir 60% of Qorvo’s MP gross of $733 cardinal successful Q2 2022), though the institution secured caller plan wins, specified arsenic the archetypal shipments of low-band PAMiD (LB PAD) modules to Samsung, and ramped up accumulation of mid/high-band PAMiD (MHB PAD) modules for the upcoming Google 7 series.

Broadcom, which has been providing MHB PAD modules for Apple’s iPhones and Samsung’s premium models, saw its RFFE revenues emergence 12.2% YoY successful Q2 2022, chiefly driven by the ramp-up of accumulation of the iPhone SE 2022.

muRata’s RFFE revenues from smartphone applications experienced a crisp autumn of 25.5% YoY successful dollar terms. The diminution was mostly owed to the important yen depreciation arsenic good arsenic the plunge successful shipments to its Android clients successful China.

China RFFE vendors are facing greater challenges arsenic the low-end smartphone conception is much susceptible to the interaction of the worldwide economical downturn and rising inflation. For instance, Maxscend, the starring RF solution supplier successful mainland China, reported a much than 25% YoY gross driblet for Q2 2022 successful dollar terms.

Smartphone RFFE gross maturation forecast for 2022 revised down

Globally, precocious ostentation and economical slowdown are prompting consumers to chopped unnecessary spending, starring to a prolonged smartphone replacement cycle. Major Android OEMs person lowered their accumulation targets for the 2nd fractional of 2022 and the resulting inventory correction is expected to persist done aboriginal 2023.

On the different hand, the yearly 5G smartphone shipment measurement is expected to summation by 20%, portion the high-end conception is indicating a higher level of resilience against the ongoing marketplace contraction. For instance, Apple is estimated to vessel 25 cardinal much 5G iPhones than it did successful 2021, with equivalent accumulation measurement for the iPhone 14 series successful H2 2022 compared to its predecessor.

Therefore, Counterpoint has revised down its 2022 maturation forecast for the smartphone RFFE marketplace to the debased single-digit scope (1%~3%) to bespeak the greater-than-expected interaction connected request for RFFE components. But successful the longer term, the RFFE marketplace is riding on the backmost of the worldwide dispersed of 5G and mmWave and has large imaginable for secular growth.