According to industry sources, Sony anticipates strong demand for the CMOS image sensors (CIS) used in high-end smartphones in 2022, despite a general fall in the demand for entry-level and midrange smartphones worldwide.
According to the sources, Sony will increase its CIS production capacity in 2023, mainly due to expectations. However, the sources cited Sony senior vice president and CFO Yuichi Oshima as saying that the company might delay the planned expansion if sales of high-end smartphones in the second half of 2022 fall short of initial projections.
In the second quarter of 2022, there were around 60 million smartphones sold in China, a 14.2 percent year-over-year decline, according to Counterpoint Research. According to Sony, the sluggish smartphone market in China is not expected to improve in 2022, which will affect their CIS shipments.
Beginning in the third quarter of 2022, Sony anticipates smartphone suppliers to boost their usage of the CIS used in large-aperture and high-resolution lenses.
According to the sources, Sony expects to increase CIS production as the shortage of logic ICs eases.
Sony has released its financial report for the second quarter of 2022. The company’s imaging and sensing solution business segment, which generates 90% of its sales from the CIS, reported sales revenues of JPY237.8 billion (US$1.83 billion), up 6.9% on the quarter and 9.0% on the year, and operating profit of JPY21.7 billion, up 102.8% sequentially but down 28.9% on the year. For the business segment, Sony additionally projects 2022 sales revenues of JPY 1,440 billion and an operating profit of JPY 200 billion.