Affected by the lower-than-expected rebound in consumer markets such as laptops and mobile phones, Synnex's (2347) revenue in the second quarter reached NT$94.8 billion, representing an 8% decrease compared to the same period last year. However, the commercial and semiconductors markets are relatively stable, leading to a monthly increase in revenue. As a result, the accumulated revenue for the second quarter showed a 7% QoQ increase.
In the second quarter, Synnex's IT Consumer business witnessed an 18% decline compared with the same period last year, primarily attributed to weak market demand and lack of consumer confidence. Specifically, consumer notebook and desktops, storage devices, computer components, peripherals/consumables and other products reached their lowest levels in the past five years. However, the e-sports and gaming segment showed a slightly rebound in demand, resulting in modest 8% annual decrease but a 3% quarterly increase. On the other hand, smart devices experienced a noteworthy 7% YoY increase and a 12% QoQ increase, reaching a new high for the same period for two consecutive quarters. In contrast, the Telecom business faced 6% YoY decrease due to the stagnant demand for mobile phones.
The IT Commercial business in the second quarter experienced a marginal 4% decline compared to the previous year. However, it still reached the second highest level for the same period and exhibited a 5% QoQ increase. The revenue contribution for the IT Commercial segment remained stable, consistently exceeding 30%. The decline in the commercial business was primarily driven by a sharp decrease in sales of commercial laptops and desktops. Conversely, other value-added products such as servers, storage systems, cloud services, and AIoT solutions recorded impressive annual growth rates ranging from 20% to 30%. These products continued to set new high records for the same period, showcasing sustained growth and performance.
In the Semiconductor business, the revenue in the second quarter remained stable, surpassing 30 billion, with a slight 3% decline compared to the previous year. However, it showed a notable 8% increase on a quarterly basis. Synnex actively promoted the Management Service Platform, which offers various business models tailored to address customer requirements and operational pain points. This approach has not only enhanced collaboration with existing customers but also attracted new customers, leading to superior performance compared to competitors.
The cumulative revenue of Synnex in the first half of the year amounted to NT$183.4 billion, reflecting a 10% year-on-year decrease. Within this figure, IT Consumer experienced a significant decline of 24%, Telecom decreased by 9%, while IT Commercial and Semiconductors saw marginal declines of 2% to 3%.
Looking ahead, Synnex anticipates the market situation to remain unpredictable. However, the company is committed to optimizing its operating structures, streamline operations, and promptly adapting to market changes. Synnex expects its operating performance to meet the original expectations and improve quarter by quarter in the second half of the year.
