China smartphone AP shipments, 1Q 2023

First-quarter 2023 smartphone application processor (AP) shipments to China-based smartphone brand vendors amounted to 120 million units, plunging 12.1% from the prior quarter and 32.6% from the prior year due to ongoing smartphone demand shrinkage on top of vendors' inventory adjustment and slow season.

Looking into second-quarter 2023, smartphone AP shipments to China-based vendors are estimated to come to 132 million units, increasing 10% sequentially as smartphone brands ramp up their inventory to a stronger extent than they did in the prior quarter to prepare for the 618 shopping festival in China.

However, on a year-over-year basis, the volume will still represent a more than 30% decline, indicating sluggish AP demand overall.