SK Hynix Looks To Expand Business Portfolio In China
News: South Korean chip maker SK Hynix is looking to expand its business portfolio in China by capitalizing on demand for mobile devices with focus on image sensors for handsets and tablets, reports ZDNet. The company said its main focus will be on image sensors which is a critical component to gauge the functionality of cameras for smartphones and tablets. SK Hynix also held an event to introduce its image sensor products and to highlight its strengths in related technologies to clients in Shenzhen, China. The event was held also with the aim to lure new customers for the company's upgraded solutions.
BMI View: IT spending growth in China is expected to outperform on a regional and global basis, with a forecast for CAGR of 9.2% from 2013-2017. A supportive economic and policy environment, low penetration of key products and services, and the meta-trend of urbanisation and infrastructure investments by the government will continue to drive demand. However, China's IT market is not without its challenges as the pool of first-time buyers diminishes and vendors struggle in the face of high levels of piracy, cyber security issues and price-sensitive consumers. The outlook is still positive, but as China develops, so its IT market evolves and vendors offering mobile PCs and services firms with strong cloud computing product portfolios are expected to perform best in China.