China smartphone AP shipments, 4Q 2022

Fourth-quarter 2022 smartphone application processor (AP) shipments to China-based smartphone vendors amounted to 137 million units, plunging 24% from the prior quarter and 20.3% from the prior year.

Because of shrinking demand and high smartphone inventory at the channel in both China and emerging markets, AP shipments to China-based smartphone vendors had already experienced on-year declines for five consecutive quarters.

Looking into first-quarter 2023, AP shipments to China-based smartphone vendors are estimated to come to only 121 million units, decreasing 11.7% sequentially and 32.3% annually, partly influenced by the slow season. With most Chinese smartphone brands anticipating lackluster smartphone upgrade demand throughout 2023, the full depletion of their excess AP inventory is likely to take longer to achieve.