Semiconductor industry continues to see strong demand for smart devices-Analysts.

KUCHING: The semiconductor industry continues to see strong demand for smart devices, according to analysts, with new features and functions expected to keep prospective customers on the lookout for new versions.According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), existing players have been continuously rolling out new versions of their smartphones.“Last month, Samsung unveiled a new version of its flagship device, Galaxy S5. Apart from improved specifications from its predecessor, the S5 is embedded with unique features such as a heart rate monitor and fingerprint reader.“This would be a boon to electronic parts manufacturers, as they would be able to diversify their offerings, should they possess the manufacturing technology,” it observed.Apart from new launches from the technology giants, the research arm noted that new brands such as Oppo and Xiaomi are also making inroads, especially in the Asia Pacific region.“Since the beginning of this year, Oppo has been aggressively marketing its series of new phones. On the local front, the company is offering approximately five new products with prices ranging from RM1,000 to RM2,000,” it said.MIDF Research further added that a notable variant would be the Oppo N1, the world’s first rotating camera with a tag price of RM1,798.It noted that Xiaomi was also quick to capture market attention and that the company has been selling its smartphone products at a shattering time. When Redmi was launched in Singapore with a tag price of S$169, it was fully sold out in just eight minutes.“This is despite the fact that customers are only able to order one unit per Xiaomi account. Xiaomi will also be offering its products in Malaysia.“We view that ECS ICT Bhd, being the largest ICT distributor in Malaysia, would stand a better chance of getting the distributorship,” it opined.With the introduction of a wider variety of smartphone, MIDF Research views that competition in the market continues to be lively. As a result, it could see the prices of smartphone continue to be further depressed moving forward.“Phone manufacturers such as Oppo and Xiaomi are offering products similar to other flagship phones at a fraction of the price.“Also, due to lower average selling price, there could be a demand shift to China and other developing countries where premium-priced phone is undesirable,” it explained.On a side note, the outlook of wearable devices is expected to mimic that of smartphone, with the research arm observing that there are 178 wearable devices currently on the market with an average tag price of US$364.“Of this, majority of the devices fall into the lifestyle and fitness category. Most of which are wrist band and smartwatches.“Nonetheless, we expect an increase in the number of offering across the category,” it projected.On the software aspect, MIDF Research noted that having a dedicated operating system and apps also play a key role in the well-being of these wearable devices.It noted that Samsung is inviting apps developer to use its newly launched software development kit for wearable to develop apps that will be compatible for Tizen wearable appliation.“Not being left out, Android also released its version of wearable OS codename Android Wear. Following the launch, we should see a bigger database of apps specifically developed for wearable devices.“This will help to entice prospective consumer in selecting these devices,” it opined.All in, MIDF Reserach maintained its ‘positive’ stance on the semiconductor industry.