IC distributors turn conservative for September as China white-box handset clients cut orders
IC distributors are turning conservative about China's white-box handset market, as clients are cutting orders amid weaker-than-expected demand, according to industry sources.
Shipments to China's handset market were satisfactory in July as clients advanced their orders to avoid strict customs controls during the Beijing Olympics in August, the sources said. Shipments in August have been stronger than expected, prompting the IC distributors to believe that demand would persist in September, the sources added.
But a poor outlook for the country's economy is preventing clients from placing orders, the sources said. IC distributors who met their clients last week to confirm September orders were surprised to find that the clients were cutting orders, the sources disclosed.
In the past, orders in September would usually rise 10-15% compared to August, but this year the volume may decline 3-5%, the sources remarked.
source
Shipments to China's handset market were satisfactory in July as clients advanced their orders to avoid strict customs controls during the Beijing Olympics in August, the sources said. Shipments in August have been stronger than expected, prompting the IC distributors to believe that demand would persist in September, the sources added.
But a poor outlook for the country's economy is preventing clients from placing orders, the sources said. IC distributors who met their clients last week to confirm September orders were surprised to find that the clients were cutting orders, the sources disclosed.
In the past, orders in September would usually rise 10-15% compared to August, but this year the volume may decline 3-5%, the sources remarked.
source
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