The consumer electronics market is in decline—where are the new growth drivers for connectors?

The “In-depth Analysis of China’s Connector and Niche Product Markets and Strategic Development Plan Report” indicates that China’s connector production is predominantly concentrated in the mid- to low‑end segments, with a relatively small share in the high‑end market; however, demand for high‑end connectors is growing rapidly. At present, China’s connector industry is transitioning from a manufacturing‑driven model to one focused on innovation. Strong demand exists for high‑end connectors—particularly in sectors such as automotive, telecommunications and data communications, computers and peripherals, industrial applications, and defense and aerospace—driving rapid expansion in the high‑end connector market.

As the third-largest downstream application segment for connectors, consumer electronics sees its growth directly influenced by the demand for products in this sector.

Since the beginning of this year, demand for consumer electronics has contracted markedly, with the domestic market—covering smartphones, televisions, refrigerators, and other products—experiencing varying degrees of decline in the first quarter.

In the smartphone sector, Counterpoint data shows that global smartphone shipments in the first quarter of this year totaled approximately 228 million units, down 7% year over year and 12% quarter over quarter. In the Chinese market, smartphone sales reached 74.2 million units during the same period, a year-on-year decline of 14%.

The domestic refrigerator market has also remained relatively sluggish. According to the “2022 China Refrigerator Market Consumption Trends Report” released on May 26, both volume and value declined across all channels in the first quarter: retail volume totaled 6.12 million units, down 9.2% year over year, while retail value reached RMB 19.2 billion, a decrease of 8.1% compared with the same period last year.

The television market is no exception: in the first quarter of 2022, global TV shipments totaled 44.9 million units, down 6.1% year over year, marking the third consecutive quarter of year-on-year decline. According to data from AVC, China’s color-TV retail sales across all channels reached 8.831 million units in the first quarter, a year-over-year drop of more than 10%, outpacing the global market’s decline.

According to the latest research report from CITIC Securities, valuation multiples in the consumer electronics sector have continued to decline since the beginning of the year. In the short term, valuations remain at historically low levels, with the current price-to-earnings ratio (PE-TTM) standing at 37 times—close to the historical low of 33 times.

As the third-largest downstream application segment for connectors, consumer electronics sees its growth directly influenced by the demand for products in this sector.

Recently, a reporter from International Cables & Connectivity reviewed the 2021 annual reports of publicly listed connector companies and found that demand growth in the consumer electronics market has either slowed or declined.

The downturn in the consumer electronics market has become widely acknowledged. As orders from some customers decline, connector manufacturers are seeking new growth drivers and proactively expanding into other high‑growth sectors with significant market potential.

“During the first five years, Luxshare’s growth was primarily driven by the consumer market; at the same time, significant efforts were needed in the communications and automotive sectors. We believe that by the end of this initial five-year period, markets outside consumer electronics will be making a substantial contribution. In the second five-year phase, the contribution from non‑consumer‑electronics markets will become even more pronounced. Our goal is to rank among the global top ten Tier 1 suppliers—first‑tier automotive component providers—within three five-year cycles.” On the afternoon of May 18, Luxshare Precision held its 2021 Annual General Meeting in the company’s headquarters building located in Qingxi Town, Dongguan City. At the meeting, Chairwoman Wang Laichun outlined Luxshare Precision’s “three‑five‑year” strategic plan.

Connector Definition

The market demand for the connector industry in China stands at 88.527 billion units.

MCX stands for Micro Coaxial. Thanks to its push‑in mating mechanism, MCX connectors enable quick and easy connection and disconnection, significantly reducing installation time. Even at frequencies up to 6 GHz, MCX connectors maintain excellent electrical performance and are available in 50‑ohm and 75‑ohm impedance options. They also accommodate a wide range of cable types, including semi‑rigid and flexible cables, ensuring reliable connections and long service life.

Detailed Explanation of Coaxial SMB Connectors

SMA coaxial connectors are well known to many users, whereas another type—SMB coaxial connectors—may be less familiar. As a connector slightly smaller than SMA, it also plays an important role in the coaxial‑cable domain. This article provides an overview of SMB coaxial connectors.

Detailed Explanation of Coaxial TNC Connectors

Its characteristic impedance is 50 ohms, and its optimal operating frequency range is 0–11 GHz. In the microwave frequency band, TNC connectors outperform BNC connectors.

Connector Definition

Connectors are indispensable components in automated electronic equipment, primarily used to link isolated devices or assemblies, enabling the flow of signals or electrical currents and thereby achieving their intended functions.

The consumer electronics market is in decline—where are the new growth drivers for connectors?

The TV market is no exception: in the first quarter of 2022, global TV shipments totaled 44.9 million units, down 6.1% year over year, marking the third consecutive quarter of year-on-year decline. According to data from AVC, China’s color-TV retail sales across all channels reached 8.831 million units in the first quarter, a year-over-year drop of more than 10%—a decline that outpaced the global market.

The company was the first to import state-of-the-art production and testing equipment from abroad.

The company adheres to a people‑oriented business philosophy, cultivates a team of outstanding professionals who excel in both integrity and competence, pursues proactive advancement, continuously strives for excellence, and endeavors to become an enterprise highly regarded by its customers.