“Rapid recovery” in the semiconductor industry “appears to be stressing significant portions of the supply chain,” said Marvell Technology Group CEO Matt Murphy on a fiscal Q3 investor call Thursday. “These supply challenges are currently limiting our ability to fully satisfy the increase in demand for some of our networking products.” Marvell’s quarter ended Oct. 31. Marvell customarily enters every quarter with “a fairly steady level of delinquency,” defined as the volume of orders on hand that it “can't supply within the quarter,” he said. “Heading into Q4, that number is significantly larger than we've had.” That Marvell customers are adapting to the constraints by placing “longer lead times on us” is only exacerbating the delinquency, said Murphy. The stock closed 4.7% lower Friday at $43.38. When Marvell talks to its supply-chain partners, “there is an anticipation that certainly within the first quarter or two in calendar '21, that we will see some improvements there,” said Murphy. It’s forecasting $785 million in revenue for Q4 ending early February, plus or minus 5%. Marvell would end the quarter up 9% from the year earlier at the midrange of that guidance. Revenue in Marvell’s networking business in Q3 was $445 million, up 10% sequentially from fiscal Q2 and 35% from the year-earlier quarter, said Murphy. Q3 was Marvell’s fifth-straight quarter of sequential revenue growth in 5G, he said. In the fiscal first half, Marvell’s application-specific IC business drove much of the 5G growth, “benefiting from the rapid deployments in China,” he said. Though the wireless infrastructure ASIC business remained strong in Q3, “the sequential growth was driven primarily by standard and semi-custom product shipments to Samsung,” he said. 5G rollout outside China “is starting to pick up,” said Murphy. “We expect consumer demand for 5G services will continue to grow worldwide,” especially following the launch of new Apple 5G phones, he said. If Qualcomm's forecast comes to pass that 500 million 5G-enabled smartphones will ship globally next year, “I think that's going to drive a lot of demand for networks,” he said. Marvell’s 5G customer base “continues to expand,” said Murphy. A second regional 5G infrastructure customer picked Marvell's Octeon microprocessors to power its new 5G base stations, he said. The unnamed customer plans to “engage” with Marvell on a “variety” of radio access network architectures for 5G, including “emerging” open RAN initiatives. By adding ORAN and virtualized RAN capabilities to its existing 5G offerings, “Marvell will be the ideal semiconductor partner with a complete 5G platform capable of supporting all RAN architectures on a common hardware and software framework,” said Murphy. “This is a critical differentiator for Marvell,” he said. “Most 5G networks will have a complex hybrid architecture to support a diverse set of deployment scenarios.”

Wearables, including adult smartwatches, sports watches and hearables, have grown in an overall 2020 CE market that has “trended towards decline,” reported Futuresource Thursday. “Consumers have been exploring alternatives to the gym, buying home workout equipment, and paying attention to a wide range of digital health products,” said analyst Stephen Mears, highlighting hearables with activity and health tracking functionality and wrist wearables with advanced biometric sensors. Hearables will account for more than 55% of global wearables market shipments this year in the category comprising wearable smartphones, extended reality head-mounted displays, fitness devices and connected watches. Mears cited opportunities in hearing correction wearables, with more than 400 million people worldwide having hearing loss, half under 50; of those, fewer than 10% own a hearing aid. Wrist wearables have potential in monitoring high blood pressure, respiratory disease, diabetes and cardiovascular disease, a “lucrative” opportunity for vendors, if managed correctly, he said. Though the ear is better for tracking health indicators such as heart rate and blood pressure, wrist wearables are marketed as fitness and health products and have screens allowing consumers to engage with data in real time, he noted. The future for wearables involves an “integrated ecosystem of wrist and ear worn wearables, with biometric tracking happening in the ear, while activity tracking and data visualisation/processing will happen on the wrist,” said Mears: “This ecosystem of products will prove to be more compelling for consumers than either device could on its own.” Apple's and Fitbit’s efforts to leverage their smartwatch platforms through service subscriptions point "to where the category as a whole is heading in the next few years."

Surprises abound in the CES 2021 registration process that went live Thursday, including a provision that lets consumers not qualified for industry credentials to participate, albeit with limited access to event content. The all-virtual show runs Jan. 11-14, with day one reserved for media only. The registration website lists the boilerplate CTA has used for years, describing CES as “a trade-only event for individuals 18 years of age or older and affiliated with the consumer technology industry.” Yet scrolling down the page brings up a section that says consumers are invited and need not be “affiliated with the consumer technology industry.” Consumers “have access to only select public programming on CES official social media channels on Twitter, YouTube, LinkedIn and Facebook,” it says. CES 2021 is charging most attendees a base $149 fee to take part in the virtual event (see 2010200026). The fee applies to “industry attendees” who register through Jan. 3, after which it soars to $499 through Jan. 14, the event’s closing day. CTA members who register with their business email addresses through Dec. 14 can enroll in CES 2021 for free. The charge then becomes $149 through Jan. 3 or $499 Jan. 4-14. Registration is free for “credentialed media” but closes Jan. 8, says the site. All fees are “non-refundable and not transferable,” says the site, which on Thursday morning listed the CTA member rate as $199 before it was later changed to $149. CTA plans a series of virtual briefings for Dec. 15 to disclose “breaking news about CES 2021" and dig deeper into the show’s Microsoft-powered “digital venue,” said a media invitation Thursday. Bob Bejan, Microsoft corporate vice president-global events, production studios and marketing community, is scheduled to speak. For now, the registration site says enrolling in CES 2021 entitles attendees to “exhibitor showcases,” product announcements and demonstrations, keynote sessions and conference programming. Exhibitor news conferences will be open only to credentialed media, it says. Industry professionals whose credentials are denied can register for the show as consumers, says the site.

Nearly half of U.S. broadband households own a smart speaker or smart display, said Parks Associates Wednesday. The user experience across smart speakers varies widely, said analyst Jennifer Kent, beyond early uses focused on information requests and music streaming. As voice control devices such as Amazon Echo and Google Home move into emergency detection and response, companies will need to ensure quality of service to instill consumer confidence, Kent said. Parks plans a smart speaker webinar Thursday at noon EST.

Online registration for the virtual CES 2021, previously scheduled to go live Tuesday (see 2010200026), "got pushed" to Thursday, emailed CTA spokesperson Jamie Kaplan, for undisclosed reasons. CTA will host a Dec. 15 virtual news conference where "we will be making some announcements and revealing the platform" for CES 2021, said Kaplan. The briefing will be a digital replacement for the physical CES Unveiled New York event in mid-November, which CTA scrapped in August due to the pandemic (see 2008250022). CTA picked Microsoft as its “cloud platform provider” to run CES 2021 as a four-day virtual event (see 2010190043). It opens Jan. 11 with a daylong media-only event.

Global smartphone sales to end users were 366 million handsets in Q3, down 5.7% from the 2019 quarter, reported Gartner Monday. After two straight quarters of 20% declines, quarterly smartphone sales have started to show signs of recovery sequentially, it said. Smartphones remain weak compared with 2019, “even with vendors introducing multiple 5G smartphones,” it said. “Consumers are limiting their discretionary spend even as some lockdown conditions have started to improve.” Sales experienced “moderate growth” from Q2 to Q3, through “pent-up demand from previous quarters,” it said. Samsung held the top global share in Q3 with 22%, with Huawei second at 14.1%. Xiaomi leapfrogged Apple to No. 3 (12.1% share). Xiaomi sold 44.4 million, a 34.9% increase from the 2019 quarter, while Apple sales declined 0.6% to 40.6 million.

After a stronger-than-expected Q3, the global smartphone market is expected to return to growth during the holiday quarter, said IDC Wednesday. It forecast 2.4% growth vs. Q4 2019, followed by 4.4% growth next year, fueled by “an impressively quick supply chain recovery” and incentives from OEMs and channels for 5G handsets. Despite lockdowns and economic concerns, consumers in many markets have shifted spending to consumer electronics from travel, dining out and general leisure activities, said analyst Ryan Reith. The recovery in China was slower than anticipated largely due to weaker-than-expected demand for 5G. IDC expects 5G smartphone shipments to reach close to 10% of global volume this year, growing to 29% in 2024. Despite concerns about the lack of demand for 5G, “the wheels are in motion to transition the mobile industry to the latest network technology,” with cost a key factor. Getting 5G pricing on par with 4G phones is an industry focus, IDC said. The research firm expects worldwide 5G average selling prices to drop 25% this year to $611, and to $453 in 2024. “Aggressive promotions and more affordable 5G devices from major smartphone vendors are expected to partially offset the impact" of COVID-19, said analyst Sangeetika Srivastava.

Xiaomi retook the No. 3 position in global smartphone shipments in Q3 with a record 13.5% share, based on 44.6% shipment growth year over year, the highest among the top five smartphone makers, said Chief Financial Officer Alain Lam on a Tuesday investor call. Its quarterly shipments outside China soared 54.1%, including a 107.3% increase in Western Europe, he said.

More than 60% of the 550 million 5G smartphones shipped in 2022 will sell for below $600, reported ABI Research Thursday. “More diverse and affordable 5G smartphones will be the main driver accelerating 5G adoption after 2021, with many lead vendors expected to push deeper into the segment, quickly democratizing the 5G experience.” More affordable 5G chipset platforms from Qualcomm, MediaTek and others will drive commoditization of handsets, said ABI: “5G at the high end will be squeezed.”

The Consumer Product Safety Commission can better protect the public from everyday hazards by “prioritizing resources,” ensuring compliance with its own reporting requirements and measuring recall effectiveness more comprehensively, reported GAO Thursday. Though staff regularly do recall “checks” by confirming that recalled products were removed from shelves and appropriate signage was placed in stores, “CPSC does not consistently assign more checks to higher-risk recalls,” the auditor said. It faulted failing to “centrally track whether firms undertaking recalls have submitted required monthly progress reports.” GAO found 61% of firms submitted progress reports more than 75% of the time for recalls closed in the four years ended in May. CPSC measures the proportion of recalled product units that have been refunded, replaced or repaired, but “using a single measure may not allow CPSC to accurately gauge the effectiveness,” said GAO. Use additional performance metrics, it recommended. CPSC didn’t comment Thursday, but wrote GAO Nov. 6 that it "generally" supports the report's recommendations and conclusions. The letter appears in Appendix IV of the report.