Consumer electronics bounce back, investment opportunities come?

The Consumer electronics show in 2022 will be held in Shanghai New International Expo Center from March 17 to 20, 2022. Adhering to innovation and change, the Consumer electronics show in 2022 has achieved continuous breakthroughs in scale, quality and global influence, and is one of the three top household appliances and the Consumer electronics show in the world.

1. What is consumer electronics?

Let's start with the basics. The so-called consumer electronics refers to the electronic products with consumer properties, such as smart phones, PC and the recently hot automotive electronics, VR/AR and so on, which have been closely related to our daily life.

Speaking of the electronics industry, in fact, we are not unfamiliar with the hot chip semiconductor is one of the sub-industries. From the perspective of industrial chain composition, the position of consumer electronic products is lower, the middle of the industrial chain is semiconductor chips, display panels, cameras and other electronic parts, the most upstream is electronic equipment, electronic materials, etc.

2. Industrial characteristics of consumer electronics?

To answer this question, we need to start with the historical performance of the consumer electronics sector. From the development of the past 20-30 years, the electronics industry basically presents a 10-year cycle of technological iteration. The opening of a new cycle usually brings the hardware industry 5-7 years of rapid growth, and 3-5 years later it enters the platform phase, but the accumulation of users also enables the dividend of software and applications to be released continuously.

With the change of The Times, the carrying form of consumer electronics is also changing. In the era of the Internet of everything, the 5G+AI cycle deepens, and new applications such as automotive electronics, smart home and AR/VR are also expected to explode with the continuous progress of science and technology. One of the biggest things about the consumer electronics industry is that big moves are often associated with product innovation cycles.

3. Why is consumer electronics weak this year?

Since the beginning of this year, the overall performance of the consumer electronics sector is relatively weak, significantly weaker than semiconductor, passive components, optical optoelectronics and other electronic industry segments, the electronics industry is basically unchanged.

There are three main reasons for the year-on-year decline in scale net profit: 1) chip shortage restrains downstream demand and raw material prices rise; 2) Decrease of logistics capacity and increase of freight; 3) Power rationing measures have been implemented in some areas, and the overall operating rate of the industry has decreased.

4. What is the investment value of the sector?

In the short term: the negative impact gradually eliminated, or has entered the layout of the plate area. First, fundamentals are expected to improve. Second, the valuation has a good cost performance.

Medium and long term: Consumer electronics is poised to kick off the next big industry cycle. First, 5G smart phones usher in a wave of replacement, which is expected to release huge demand elasticity. Second, AloT (Artificial Intelligence Internet of Things) is expected to be an incremental market in the post-smartphone era. Third, under the wave of new energy vehicles, automotive electronics become an important transformation breakthrough point.

On the whole, there are many subdivisions in the consumer electronics sector. If you do not have in-depth research on the industry and want to seize the long-term growth opportunities of the sector, you are advised to use the consumer electronics ETF for layout.

Adhering to the aim of bold innovation and excellence, the Consumer electronics show in 2022 will promote the development of the industry. There will be more fresh and fresh highlights and gather global wisdom and technology to create a better life. For more information, welcome to the Appliance&electronics World Expo (AWE) in 2022.