Shares in electronic group ended Wednesday trading with a sharp loss as investors fretted over an anticipated drop in worldwide device shipments in 2023.
The share price of KCE Electronics Pcl. (SET: KCE) closed 11.40% lower to THB50.50/share, with a trading value of THB5,044 million.
The share price of Delta Electronics (Thailand) Pcl. (SET: DELTA) lost 4.12% to close at THB930/share, with a trading value of THB2,627 million.
Meanwhile, the share price of Hana Microelectronics Pcl. (SET: HANA) closed 11.40dropped 4.69% to THB61.00/share, with a trading value of THB1,296 million.
Stamford, USA-based technology research and consulting firm Gartner Inc. forecasts that global shipments of all devices, including PCs, tablets, and smartphones, would fall 4.4% to 1.7 billion in 2023. In 2022, the devices shipment market declined 11.9%.
“The depressed economic market will continue to dampen demand for devices throughout 2023. In fact, end-user spending on devices is projected to decline 5.1% in 2023,” said Ranjit Atwal, Senior Director Analyst at Gartner. “Just as business confidence was beginning to recover after the worst of the pandemic, it has now fallen significantly in most regions. We do not expect relief from inflation and the bottom of the recession to occur until the fourth quarter of 2023.”
The declining trend affecting the devices market will reduce in 2023 as a result of a less bleak economic outlook through 2023, finally leading to an increase in consumer and company spending, the firm added.