The second quarter showed a decline in demand for smart phones, the components of which TSMC produces in large quantities.
It is appropriate to make a remark about the share of TSMC services cost in individual smartphones classes. In this way, the average smartphone contains the equivalent of $ 17.8 Service TSMC, as in the following figure will increase to $ 19.7. The average price range is set to rise from $ 6 to $ 6.4, but the cheapest smartphones bring TSMC $ 3.4 each, and next year this proportion will not change. If we consider that each year around the world sold more than a billion new smartphones, you can understand how much TSMC depends on this market.
TSMC says that in the second quarter, demand for smartphones fell more than expected, especially in markets with growing economies and in China, where they began to buy less smartphones primary and secondary levels. The blame for this dynamic shared weakness of regional economies and the strengthening of the dollar against the local currency. Segment of expensive smart phones also suffered, as people began to refrain from costly acquisitions.