Early quarterly report cards show that smartphone sales in China are rising again as COVID-19 cases there decline and global demand for chips used in work-from-home networks is surging, positioning Asian tech firms for a slow but steady recovery.
Samsung Electronics guided on Tuesday to a better-than-expected first-quarter profit, as data centres stacked up on memory chips to deal with a rise in virtual meetings.
And Apple Inc supplier Foxconn reported on Monday a drop in March-quarter sales that was slightly smaller than it had first estimated.
As well, news that the number of new COVID-19 cases were receding in Europe and starting to plateau in some parts of the United States – big markets for Asian tech companies – fuelled gains in Asian shares on Tuesday…
Smartphone sales in China are also expected to edge up in the coming months as stores have reopened, and companies are hopeful of strong demand for 5G-enabled phones… Foxconn, which said last month it expected to resume normal production in China by the end of March, warned it does not expect to see any revenue growth in the first half of this year. But the company, formally known as Hon Hai Precision Industry, told investors last week it can still get the latest 5G-enabled iPhones ready for an autumn launch.
MacDailyNews Take: It certainly feels like we’re beginning to think about turning the corner and looking forward to the COVID-19 recovery as we’re seeing positive, promising signs in this battle!