Murata Manufacturing expects this year’s drop in smartphone sales to keep going well into 2023, led by a sharp downturn in China.
The company’s outlook has dimmed dramatically from a quarter ago, when it looked forward to a bounceback in Chinese demand after the end of COVID-19 lockdowns in major cities. Consumers in the world’s biggest smartphone market haven’t responded with a spending spree and Murata sees little prospect for a rally over the next year, President Norio Nakajima said in an interview.
"The momentum will not come back at least during fiscal 2022 and the situation is not that positive going into the next term,” Nakajima said. "Demand for consumer electronics has dropped drastically and these Chinese makers are not feeling well.”