NXP CEO Kurt Sievers said that China’s smartphone market is still struggling, but that chip orders from one major non-Android customer are still strong. NXP makes NFC chips that go into smartphones, and analysts believe Apple is a major customer.
Sievers’ comments in an interview with Reuters came a day after the company gave a better-than-expected sales forecast based on a steady recovery in the automotive segment, sending its shares up 4.8% to $221.05 by midday Tuesday.
China’s smartphone market has suffered as the country’s growth has slowed, with Counterpoint Research reporting that sales declined 8% for the early June “618” shopping season in the country. But Apple has resisted the trend, with sales rising 8% during the shopping period, Counterpoint said.
NXP’s forecast suggests that Apple’s strength may continue. In an interview, Sievers said NXP expects mobile revenue to increase 23% in the current third quarter, up from $284 million in the just-ended second quarter.
While the Android portion of those mobile chip orders is growing slightly, Sievers said there is no rebound in sight…
Sievers said most of the 23% increase forecast for mobile chip sales is attributable to a large customer that NXP cannot name. Most analysts believe that company is Apple.
MacDailyNews Take: Further proof that if it’s not an iPhone, it’s not an iPhone.
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