Rising popularity of metallic smartphones has resulted into a downfall of plastic injection molding industry. 2014 saw most of the smartphone makers choosing metal for their flagship phones thereby reducing the demand for plastic.
Plastic case makers, such as INTOPS, Shinyang and Woojeon & Handan are in a crisis. Samsung which is the largest smartphone maker was making devices with plastic cases. However, with the introduction of the Galaxy Alpha and the A series of smartphone, the Korean company has shifted from plastic to metal. Currently, Samsung is using metal casing is seven percent of its sales and it is predicted that the percentage will further increase in the next year.
In addition. Chinese companies which have entered the markets with a bang have joined the current market straits and using metal casing in their smartphones thereby following the likes of Samsung and Apple. HTC, Lenovo, Huawei and ZTE have already released new smart phone models applied with metal casing and Xiaomi has decided to use a metal case for Mi 4 smartphone.
These companies are embarking on new investments to purchase computer numerical control (CNC) equipments while making use of the existing facilities as much as possible. The problem is their funding power. As a large number of companies have invested large amounts of fund in purchasing projection molding machinery or entering the Vietnamese market in the last several years, not many companies have a sufficient funding power to make the necessary investments. Some are even turning to new business items by downsizing their case business altogether.
Leading plastic injection molding companies are investing in meta casing facilities owing to decreasing demand of plastic casing. They are seeking investments to buy computer numerical control (CNC) equipments while making use of the existing facilities as much as possible. It has become necessary for the plastic case makers to scrape up the money for investment and to secure competitive power in the metal casing market as quickly as possible.