GEORGE TOWN: Global smartphone sales are picking up, latest industry data shows, and that is good news for component supplier Globetronics Technology Bhd.
Group chief executive officer Datuk Heng Huck Lee told StarBiz that although the global shipment of smartphones is projected to grow at a more moderate pace, new releases planned for next year will feature the next generation of high-tech sensors.
Globetronics, he said, would be investing in high-precision tools and equipment to support this development.
“These are leading-edge precision technologies that also allow us to integrate multiple components and sensor functions into a single sensor system-in-package (SIP).
“While the total quantity may remain flat, this SIP module would enhance the value of each new sensor, ” he said.
As it is, the company is in the early stages of prototyping two new smartphone modules.
“These new modules are for smart devices scheduled for release in late-2020, ” he said.
The new sensors are expected to be shipped starting from the second quarter of 2020.
“From our customer preliminary projection, we are expecting a stronger number that is expected to surpass that of the same period of 2019, ” Heng said.
Meanwhile, the current product order momentum remained “strong, ” he said, and the trend is expected to continue into the first half of 2020.
“Generally, our non-sensor customers are also quite optimistic about their 2020 projections, ” he added.
But with new product development, there are bound to be some production hiccups.
Heng said this was mainly to cater to design changes and supply chain issues.
“We expect the problems to be resolved before the end of the year, ” he said.
This includes getting a sensor producer to move its operations from China to Malaysia.
“We are planning to lease a third of the production space at the Kuala Lumpur plant to a company to produce sensors, ” Heng said.“The revenue generated from these activities would show up in the 2020 financial year, ” he added.
For the nine-month period ended Sept 30, Globetronics posted a net profit of RM30.1mil on the back of RM157.3mil in turnover.
As at Sept 30, the group had cash and cash equivalents of RM126mil.
Globetronics is one of the many companies across Asia that makes components used in smartphones produced by Apple Inc.
A Nikkei Asian Review report last Friday quoted sources as saying that Apple planned to ship 80 million 5G phones next year.
Samsung Electronics, Huawei Technologies and makers of Oppo and Xiaomi smartphones have already launched 5G phones this year.
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