HK Stock Market Move | Mobile phone industry chain under pressure, storage price hike impacting consumer electronics, Citigroup lowers global smartphone shipment forecast.

The entire mobile phone industry chain is under pressure. As of press time, BYD ELECTRONIC (00285) fell by 4.97% to HK$30.18; FIH (02038) fell by 3.15% to HK$20.9; Lens Technology (06613) fell by 2.85% to HK$22.5; COWELL (01415) fell by 2.19% to HK$25.02. On the news front, Citigroup released a research report stating that it has lowered its global smartphone shipment forecasts for this year and next to 1.04 billion and 1.17 billion units respectively, representing a 17% decrease and a 12% increase year-on-year, and predicts that shipments will rise by 7% to 1.25 billion units in 2028. These forecasts are based on memory shortages, price increases, and softening demand due to rising inflation, with average selling price increases forecasted at 7%, 2%, and 3% respectively. The report also mentioned that IDC published that smartphone shipments in the fourth quarter of last year were 5% higher than expected, mainly driven by the Central and Eastern Europe, Middle East and Africa, and America regions. The shipments of foldable phones last year were basically in line with expectations, and the bank remains optimistic about the forecast of 29 million and 45 million units being driven by iPhone foldable phones for this year and next.