Smartphone camera module maker Partron reported lackluster second-quarter earnings due to major customer Samsung manufacturing fewer smartphones.
Demand for smartphones during the second half of 2022 is also expected to be low while Samsung is planning to reduce the number of camera modules on the phones it launches in 2023.
Coupled with the South Korean tech giant’s efforts to cut costs in its smartphone production by diversifying its camera module suppliers, this means the outlook for camera module makers like Partron will be dim at best.
Partron reported revenue of 284 billion won and operating profit of 8 billion won, a drop of 5% and 45% compared to last year.
Samsung reduced the number of smartphone parts it bought during the second quarter due to its high inventory of around 50 million units during the second quarter.
Sources said other camera module makers Mcnex, Power Logics, Cammsys and others are also expected to report poor second-quarter earnings.
Samsung Electro-Mechanics, which also supplies camera modules to Samsung, saw the sales of its camera module business drop by 4% year-on-year as well.