Changes in Orders Driven by Slower Smartphone Market Growth and Technological Innovation
First written in FY2016. 20 of 36 entries say "Worsened", first in FY2019-Q1. Latest entry: 2026-08-06.
Sun A.Kaken moved to the "Worse" side of this theme in 2021, 3 years after the typical company in this theme (2018).
The whole theme swung hardest in 2019: 10 of 16 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- 2026-08-06MitigatedEarnings
「Sales of other adhesive products increased as orders for protective film for foldable smartphones remained strong.」
Strong orders for protective film for foldable smartphones were reported, with the impact of order fluctuations in this application partially easing during the quarter. - FY2026WorsenedAnnual report
「Orders for other adhesive products declined due to specification changes for smartphones, tablets and other devices, as well as weak sales of VR goggles.」
Lower orders resulted from specification changes for smartphones, tablets and other products and weak VR headset sales, bringing the volatility risk associated with technological change and application-specific demand to the fore. - FY2026-H1New-model adoption coincided with inventory adjustmentsAnnual report
「Revenue from release paper increased as process paper for FPCs was adopted for new smartphone models and performed well.」
While orders for FPC process paper benefited from adoption in new smartphone models, revenue from protection film and other products for foldable smartphone applications declined due to inventory adjustments, resulting in divergent order conditions by smartphone-related application. - FY2025MitigatedAnnual report
「Revenue from other adhesive products increased as orders for newly acquired protective films for foldable smartphones and mobile applications remained strong.」
In mobile device-related applications, orders for new foldable smartphone and mobile applications were strong, partially mitigating the impact of order volatility in the traditional display and smartphone markets. - FY2025-H1MitigatedAnnual report
「Inventory reduction for display-related components progressed, and orders for existing optical surface-protection films recovered. In addition, newly developed surface-protection films were adopted for electronic and automotive components, resulting in higher revenue for olefin-based adhesive-coated products and other adhesive-coated products. As a result, revenue for the current interim consolidated accounting period was ¥3,115 million, up 14.4% year on year.」
Orders for optical surface protection film recovered as inventories of display-related components were worked down, and adoption for electronic and automotive component applications also progressed. The impact of order volatility associated with dependence on the smartphone and display markets was partially mitigated. - FY2024-Q3MitigatedAnnual report
「Inventory reduction progressed at some LCD-panel manufacturers, and orders for optical surface-protection films began to show signs of recovery. Orders for surface-protection films for automotive panels also increased, suggesting that the decline in orders had bottomed out, but the impact of lower orders in the first half weighed heavily, resulting in lower revenue.」
The consumption of inventories by liquid-crystal panel manufacturers and increased orders for automotive panels resulted in signs of recovery and a bottoming out in orders for optical surface protection film. The impact of lower orders in the first half remained, and functional materials posted lower revenue. - FY2024-Q2WorsenedAnnual report
「Sales volumes of LCD panels for televisions, personal computers and smartphones have remained sluggish for an extended period, weighing on demand across the display market. As a result, order volumes for optical surface-protection films continue to decline.」
The prolonged weakness in sales volumes of liquid-crystal panels for televisions, computers and smartphones is affecting actual performance through lower orders for optical surface protection film for optical applications. - FY2024-Q1WorsenedAnnual report
「Sluggish sales volumes of televisions, computers, smartphones and other products, caused by the slowdown in the Chinese economy, higher interest rates in Europe and the United States, and other factors, have depressed demand across the display market. As a result, orders for optical surface protection film for these applications declined substantially, and revenue from other adhesive-coated products fell.」
Sluggish sales volumes of televisions, computers, smartphones and other products due to the slowdown in the Chinese economy and higher interest rates in Europe and the United States were reflected in a substantial decline in orders for optical surface protection film. - FY2023WorsenedAnnual report
「Liquid-crystal panel manufacturers have continued to make substantial production cuts as sales volumes of smartphones, tablets and other products have remained sluggish due to global inflation. As a result, orders for optical surface protection film for these applications have declined substantially.」
Sluggish sales volumes of smartphones, tablets and other products and continued substantial production cuts by liquid-crystal panel manufacturers resulted in a substantial decline in orders for optical surface protection film. - FY2023-Q3WorsenedAnnual report
「Sales of smartphones, tablets and other devices remained sluggish amid global uncertainty, including the slowdown in the Chinese economy, and LCD-panel manufacturers made substantial production cuts. As a result, orders for optical surface-protection films for these applications declined significantly. Revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥4,319 million, down 28.1% year on year.」
Orders for optical surface protection film declined substantially due to weak sales of smartphones, tablets and other products and steep production cuts by liquid-crystal panel manufacturers, resulting in a 28.1% decline in revenue from functional materials. - FY2023-Q2WorsenedAnnual report
「For release paper, while demand for automotive-related components was recovering, orders for process paper used in FPCs declined and sales remained weak due to sluggish smartphone and tablet sales.」
Weak sales of smartphones and tablets became evident in sluggish orders for process paper for FPCs. Order volatility risk in the mobile device market continues. - FY2023-Q1WorsenedAnnual report
「Notebook computers and tablets, whose shipments had increased with the spread of telework and online classes, turned downward as demand reached a plateau. Demand for liquid-crystal televisions also declined amid deteriorating consumer sentiment due to the prolonged Ukraine crisis and other factors.」
Demand for devices, which had grown on the back of telework and online classes, reached a plateau and turned downward, while demand for liquid-crystal televisions also declined due to the prolonged Ukraine crisis and other factors. The impact of order volatility risk for functional materials worsened in actual results. - FY2022WorsenedAnnual report
「However, as the market expands globally, the life cycles of new technologies and products are shortening, and substantial fluctuations in supply and demand are recurring over short periods.」
The shortening life cycles of new technologies and products and substantial short-term fluctuations in supply and demand are identified as structural risks, and have also led to lower SAT orders and lower revenue from functional materials. - FY2022-Q3WorsenedAnnual report
「For other adhesive-coated products, orders for SAT, a precision-coated surface protection film, declined due to the impact of production adjustments caused by the semiconductor shortage and the sale of the equity interest in the Chinese affiliate Chang Ding Electronic Materials (Suzhou) Co., Ltd.」
In addition to the previous factors of market slowdown and model changes, production adjustments caused by the semiconductor shortage and the sale of the equity interest in the Chinese affiliate emerged as factors behind lower SAT orders, increasing order volatility risk. - FY2022-Q2WorsenedAnnual report
「For other adhesive-coated products, sales expansion of Sanitec NS, a PET-substrate product, progressed. However, orders for SAT, a precision-coated surface protection film, declined due to intensifying competition in China's smartphone component market and the global semiconductor shortage, resulting in lower revenue.」
While PAC benefited from growth in smartphone-related projects, SAT orders declined due to intensifying competition in China's component market and the semiconductor shortage, increasing order volatility risk by product. - FY2022-Q1Order trends diverged by product amid intensifying competition in the Chinese marketAnnual report
「Revenue from PAC, a two-layer coextruded surface protection film, increased as the decline in orders for polarizer applications, which had continued until then, bottomed out and smartphone-related projects got underway. For other adhesive-coated products, revenue from SAT, a precision-coated surface protection film, declined as orders for smartphone-related components fell due to intensifying competition in the Chinese market.」
PAC benefited from the bottoming out of polarizer applications and the launch of smartphone-related projects, while SAT experienced lower smartphone-related orders due to intensifying competition in the Chinese market, resulting in divergent impacts by product. - FY2021WorsenedAnnual report
「For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined amid deteriorating relations between China and the United States, resulting in lower revenue.」
In mobile device-related applications, including smartphones and tablets, the deterioration in Japan-China and U.S.-China relations, in addition to the pandemic, resulted in lower orders, and revenue from functional materials declined 14.5%. - FY2021-Q3WorsenedAnnual report
「Orders for PAC, a two-layer coextruded surface protection film, and SAT, a precision-coated surface protection film, for polarizers and smartphones declined due to the impact of COVID-19 and tighter U.S. export controls on Chinese companies, resulting in lower revenue.」
Regarding volatility in orders for smartphones and other products, tighter U.S. export controls on Chinese companies were identified as a new factor behind lower orders, in addition to the existing market conditions and impact of the pandemic. - FY2021-Q2RestatedAnnual report
「Orders for PAC, a two-layer coextruded surface protection film, and SAT, a precision-coated surface protection film, for polarizers and smartphones declined due to the impact of COVID-19, resulting in lower revenue.」
Regarding volatility in smartphone-related orders, the decline in PAC and SAT orders due to the impact of the pandemic continues, in addition to the previous factors of market slowdown, model changes and others. - FY2021-Q1WorsenedAnnual report
「Orders for PAC, a two-layer coextruded surface protection film, and SAT, a precision-coated surface protection film, for polarizers and smartphones declined due to the spread of COVID-19, resulting in lower revenue.」
Regarding volatility in smartphone-related orders, lower orders due to the spread of COVID-19, in addition to the previous factors of market slowdown and model changes, were reflected in actual performance. - FY2020WorsenedAnnual report
「Orders for PAC, a two-layer coextruded surface protection film, and SAT, a precision-coated surface protection film, for smartphones remained solid. However, orders for televisions declined from the second half of the fiscal year due to production adjustments by liquid-crystal panel manufacturers, and the impact of the spread of COVID-19 was added from the beginning of the new year, resulting in lower revenue.」
While orders for smartphones remained solid, production adjustments by liquid-crystal panel manufacturers and the spread of COVID-19 intensified the impact of order volatility, resulting in lower revenue from functional materials. - FY2020-Q3MitigatedAnnual report
「Orders for both PAC, a two-layer coextruded surface protection film, and SAT, a precision-coated surface protection film, increased in smartphone-related applications. However, orders for polarizer applications declined due to production adjustments by liquid-crystal panel manufacturers resulting from excess inventories, leaving sales at roughly the same level as in the previous fiscal year.」
PAC and SAT orders increased in smartphone-related applications, partially mitigating the impact of order volatility caused by the slowdown in the smartphone market that emerged in the previous fiscal year. Meanwhile, production adjustments due to excess inventories at liquid-crystal panel manufacturers became another factor behind lower orders. - FY2020-Q2MitigatedAnnual report
「Orders for PAC, a two-layer coextruded surface protection film, increased for polarizers and smartphone-related applications, resulting in higher revenue. Orders for SAT, a precision-coated surface protection film, for liquid-crystal television-related applications remained solid, and smartphone-related orders also recovered, resulting in higher revenue.」
As smartphone-related PAC orders increased and SAT orders also recovered, the impact of order volatility caused by the market slowdown that emerged in the previous fiscal year was partially mitigated in the quarter. - FY2020-Q1MitigatedAnnual report
「Orders for PAC, a two-layer coextruded surface protection film, increased for polarizers and smartphone-related applications, resulting in higher revenue. Orders for SAT, a precision-coated surface protection film, for liquid-crystal television-related applications remained solid, while smartphone-related orders also recovered, resulting in higher revenue.」
As smartphone-related PAC orders increased and SAT orders also recovered, the impact of order volatility caused by the slowdown in the smartphone market that emerged in the previous fiscal year was partially mitigated in the quarter. - FY2019WorsenedAnnual report
「At the same time, touch-panel technology is advancing rapidly, creating a constant risk that the optical materials used and their configurations may change over a short period. In particular, the global proliferation of mobile devices and the concentration of market share in specific models have caused volatility in orders for surface protection film to trend higher. If this volatility increases substantially, it could affect the Group's performance.」
The risk is described more specifically, with technological innovation and the concentration of market share in specific models tending to widen order volatility. - FY2019-Q3WorsenedAnnual report
「Under these conditions, orders for optical surface protection film declined due to the slowdown in the smartphone market and model changes for adopted devices, while orders for air cushioning materials, release paper, tape substrates and other products were also weak, resulting in lower revenue for the Group.」
Orders for optical surface protection film continued to decline due to the slowdown in the smartphone market and model changes for adopted devices. Weak orders spread to other products, resulting in lower revenue. - FY2019-Q2WorsenedAnnual report
「Optical surface protection film, which had performed well through the previous fiscal year, struggled in terms of sales due to the slowdown in the smartphone market and model changes for adopted devices. Orders for air cushioning materials, tape substrates and other products were also weak, resulting in lower revenue.」
In addition to the slowdown in the smartphone market, model changes for adopted devices led to weak sales of optical surface protection film, further intensifying the impact of order volatility. - FY2019-Q1WorsenedAnnual report
「Surface protection film for smartphones, which had driven higher sales through increased orders in the same quarter of the previous year, experienced a larger decline in orders this quarter due to the slowdown in the smartphone market.」
The report states that the decline in orders widened from the same quarter of the previous year due to the slowdown in the smartphone market, indicating that the impact of order volatility risk has intensified further. - FY2018MaterialisedAnnual report
「Orders for SAT, a precision-coated surface protection film, were strong from the start of the fiscal year through the third quarter. Sales remained high until orders declined in the fourth quarter due to customer inventory adjustments, ultimately resulting in a 15.8% year-on-year increase in revenue.」
While orders related to smartphones and other products were strong for the full year, orders actually declined in the fourth quarter due to customer inventory adjustments, bringing the risk of order volatility to the fore. - FY2018-Q2MitigatedAnnual report
「Orders for PAC, a two-layer coextruded surface protection film, increased in both the liquid-crystal television-related and smartphone-related fields, resulting in higher revenue. Orders for SAT, a precision-coated surface protection film, for liquid-crystal television polarizers were strong, mainly overseas, and smartphone-related orders also remained generally solid, resulting in a substantial increase in revenue.」
PAC orders increased in the smartphone-related field, while SAT orders also remained solid, partially mitigating the impact of order volatility caused by slower market growth in the quarter. The market risk itself is not reported as having been resolved. - FY2018-Q1MitigatedAnnual report
「Orders for SAT, a precision-coated surface protection film, for liquid-crystal televisions increased, mainly overseas. In addition, as the smartphone market showed signs of recovery, orders from domestic manufacturers of optical-related components were strong, resulting in a substantial increase in revenue.」
The report cites signs of recovery in the smartphone market and strong orders from related component manufacturers, indicating that the impact of order volatility caused by slower market growth was partially mitigated for SAT in the quarter. It does not state that the market risk itself has been resolved. - FY2017-Q3MitigatedAnnual report
「Revenue from the precision-coated surface protection film SAT increased substantially, as orders from manufacturers of smartphone-related components increased and orders from manufacturers of liquid-crystal television-related components also grew, mainly overseas.」
In the smartphone-related field, which had previously been cited as a factor behind lower orders, increased orders from component manufacturers are now reported. However, the risks of slower market growth and technological innovation themselves are not reported as having been resolved. - FY2017-Q1RestatedAnnual report
「In IT-related fields, including release paper for electronic component assembly and process paper for electrical materials, revenue from release paper overall declined substantially due to the impact of slower smartphone market growth and other factors.」
Slower smartphone market growth continues to affect orders and sales in IT-related fields. - FY2016First statedAnnual report
「In addition, orders from materials manufacturers for the precision-coated surface protection film SAT declined, reflecting slower growth in the smartphone market and the trend toward reducing the number of optical film components used as touch-panel technology advances.」
The risk section explains that order volatility is widening, while the performance section cites lower orders due to slower smartphone market growth and other factors.