- In the second quarter of 2022, the year smart phone Wireless front-end services market revenue decreased 14% sequentially and 6% year-over-year.
- against market downturn, Qualcomm Broadcom reported positive year-over-year revenue growth of 7.6% and 12.2%, respectively.
- We have revised the 2022 revenue growth forecast for the Smartphone RF Front End Component Market to a low single digit amid an unfavorable macro environment.
In the second quarter of 2022, total market revenue of various RFFE front-end components related to smartphones, primarily including integrated RF PA (power amplifier) modules, receiver modules and discrete components such as filters, switches, and LNAs (low noise amplifiers) ) and energy trackers, up 14% sequentially and 6% year-over-year, according to Counterpoint. Smartphone RF front end tracker.
Global smartphone shipments declined 9% year-over-year in the second quarter of 2022, and the growth rate is expected to decline further in the third quarter of 2022. Against the backdrop of this growing uncertainty, OEMs, particularly in the camp of Android, more conservative in management Inventory Their efforts to eliminate inventory have led to significant reductions in orders for generic RF components, interrupting the secular growth trend of the smartphone RFFE sector. In this context, the top sellers showed a mixed sales performance.
Smartphone RFFE Market Revenue Down 6% YoY in Q2 2022
Source: Counterpoint RF Front-end Tracker, Q2 2022
Qualcomm It generated a 7.6% year-over-year revenue increase for RFFE components, building on its leadership in providing high-performance mobile platforms for premium smartphones. In the second quarter of 2022, shipments of major models supported by snapdragon 8/8 + Gen 1 exceeded 10 million with a much stronger presence (share increased to around 79%) in Samsung Galaxy S22 family. This momentum will continue, resulting in strong demand for embedded 4G/5G PA paired devices and mmWave units. Besides, we’ve seen widespread adoption of Qualcomm’s diversity receiving modules across platforms at the expense of muRata.
Sky WorksRFFE revenue was nearly flat year over year, with a larger contribution than apple and Samsung (the two largest customers were estimated to account for nearly 90% of Skyworks mobile revenue of $764 million in the second quarter of 2022) but less exposure to OEMs in China (less than 10% of Skyworks mobile revenue), as a portfolio Its products are positioned towards the mid to high level where there is a high level of customization requirement.
qorvoRFFE smartphone revenue declined 11.3% year-over-year in the second quarter of 2022 due to lower smartphone production via Android customers (combinedly contributing to approximately 60% of Qorvo MP’s revenue of $733 million in the second quarter of 2022), although that the company scored a new design win, such as first shipments of low-band PAMiD (LB PAD) modules to Samsung, and ramped up production of mid/high-range PAMiD (MHB PAD) modules for upcoming modules Google 7 series.
from Broadcomwhich has been providing MHB PAD units for Apple iPhones and Samsung’s premium models, saw RFFE revenue increase 12.2% year-over-year in the second quarter of 2022, primarily driven by increased production iPhone SE 2022.
morataRFFE revenue from smartphone apps saw a sharp decline of 25.5% year over year in dollar terms. The drop was largely attributed to the significant depreciation of the yen as well as lower shipments to Android customers in China.
RFFE vendors in China face greater challenges as the low-cost smartphone sector is more vulnerable to the impact of the global economic downturn and rising inflation. For example, Maxscend, a leading provider of radio frequency solutions in mainland China, reported a revenue decline of more than 25% year-over-year in the second quarter of 2022 in dollars.
RFFE Smartphone Revenue Growth Forecast for 2022 revised downward
Globally, high inflation and an economic slowdown are pushing consumers to cut back on non-essential spending, prolonging the smartphone replacement cycle. Android OEMs have lowered their production targets for the second half of 2022 and the resulting inventory patch is expected to continue through early 2023.
On the other hand, annual 5G Smartphone Freight volume is expected to increase by 20%, while the high-end segment indicates a higher level of resilience in the face of the ongoing market downturn. For example, it is estimated that Apple will ship 25 million more 5G iPhones than it did in 2021, with production volumes equivalent to iPhone 14 . series in the second half of 2022 compared to the previous one.
Therefore, Counterpoint has revised its 2022 growth forecast for the smartphone RFFE market to a low single-digit range (1%~3%) to reflect the larger-than-expected impact on demand for RFFE components. But in the long run, the RFFE market is dependent on the global reach of 5G and mmWave networks and has great potential for secular growth.
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