Smartphone Sales Picking Up Again - ARM

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Smartphone Sales Picking Up Again - ARM
Things starting to look up for smartphone manufacturers...

Tim Score, CEO of ARM Holdings, has told Reuters today in an interview that he believes things are starting to turn around for the smartphone industry following concerns that the market was starting to lose pace as sales decreased. Things are improving almost across the board at the moment, though, with many companies, including ARM, showing increased revenues for the first quarter of this year.

Sales figures for high end devices, particularly those from Samsung and Apple, had been disappointing for the traditionally busy Christmas period, leading many to suggest the market could be facing a slump as users opt to stick with handsets for longer than they had done in the past.

ARM's revenue had been affected by the fact that many maufacturers had held off on ordering new components as they opted instead on using up the ones they already had which hadn't been used in the manufacturing process yet because of low sales. Speaking about this phenomenon, Scores said:

There has been an inventory correction in smartphones, that looks to be unwinding.We saw TSMC showing very strong guidance for their second quarter, which will inform our Q3 royalties.

There are still issues for the market, though, with the increased power of modern smartphones and a relative lack of technical improvement over any given 12-month period meaning that consumers are less likely to upgrade as regularly as they had been over the past few years, especially when it comes to expensive high-end devices, which is arguably why the wearable technology market is potentially so lucrative for smartphone manufacturers - although that in itself has seen less than stellar performance over the past year.



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