US imports of consumer goods, particularly home electronics, experienced a significant decline in the second quarter of 2023, following the end of the Covid-induced work-from-home electronics boom, while US manufacturing also slowed, indicating challenges in stimulating demand; however, claims that this decline in imports is solely due to re-shoring are false, as imports from US allies such as Mexico, Vietnam, and India have increased in tandem with China's declining exports to the US.
Taiwan Semiconductor Manufacturing Company (TSMC) reported a decline in revenue growth in the first half of 2023 due to reduced customer orders and sluggish shipment growth, which can be attributed to the wider semiconductor market downturn and weaknesses in the PC, smartphone, and server markets, overshadowing the company's modest revenue contribution from AI growth. However, TSMC's growth recovery could be supported by the improving outlook in end markets such as smartphones, PCs, and servers.
Best Buy's sales and profits declined in Q2 due to a pullback in consumer spending, but the decline was smaller than expected, and shares rose as profits exceeded expectations; the company anticipates stabilization and possible growth in the consumer electronics industry next year as shoppers look to upgrade their gadgets.
Xiaomi reported a decline in revenue and smartphone sales for Q2 2023, with overall revenue decreasing by 4% and smartphone shipments dropping by 15.8%, attributed to weakened global market demand; however, the company maintained its position as the third-largest global manufacturer and ranked second in Europe and the Middle East.
Dell Technologies reported better-than-expected sales of personal computers and data center hardware, and expressed optimism about the demand for AI products, indicating a potential recovery in the market for corporate technology.
Dell's stock surges after the company reports better-than-expected earnings and strong demand for its products.
Dell shares surged 22% on Friday, the company's best day since returning to the public market in 2018, following better-than-expected earnings driven by a big revenue beat, and Morgan Stanley named Dell its top IT hardware pick, replacing Apple, due to its emergence as an early Generative AI winner and strong demand for AI servers.
Smartphone sales in the country declined in the second quarter, but at a slower rate, as consumers limited their spending due to high commodity prices, according to IDC.
The global smartphone market continues to decline, with a 6.6% drop in Q2 2023 and a 13.3% decline in the first half of the year compared to 2022, affecting different companies in different ways, with Samsung still leading but facing challenges from Apple, Xiaomi, Oppo, and Transsion.
U.S. manufactured goods orders experienced a significant 2.1% decline in July, the first drop in four months, due in part to higher interest rates impacting business equipment spending.
China's share of US goods imports has dropped to its lowest level since 2006, as American companies reorganize supply chains to reduce dependence on China and shift to countries like Mexico and Vietnam.
China's exports and imports continued to decline in August due to weak overseas demand and sluggish consumer spending, posing challenges to the country's economic growth targets.
Apple's recent stock decline due to Chinese government restrictions on iPhones and foreign-branded devices represents a buying opportunity, as China's past restrictions have not significantly impacted sales and Apple's attractive valuation and strong prospects suggest a rebound.
Apple's iPhone sales in China surpassed the United States in the second quarter of 2023, becoming the largest market for iPhone shipments, while Qualcomm announced that it will continue to supply Apple with 5G modems through 2026.
