As indicated by typical sales data, the demand for screen protection products seems to be strong and going to continue growing while the growth in demand may slow down gradually.

Sector’s Current, Trend, Causes behind trend, and Future

Current and Trend

1. The demand, from mobile devices’ manufacturers, retailers, and international market, for screen protection products seems to have been strong and gradually growing in the past three years as indicated by continuing increase in sale volume of those typical companies in this sector.

2. Companies in this sector have pursued to diversity their products as the growth in demand for their traditional screen protection products ( glass and film) slowed down in the past several years.

Causes behind the trend

1. Demand for products in this sector should have been driven by sales of mobile devices of their manufacturers’ clients and individual consumers, especially from international market.

2. Slowing down demand combined with increasing competition may be the reason why companies have managed to diversity their products.

Industry Future

1. Developing new products and market and cost controlling may be the keys for companies in this sector to deal with increasingly intensive competition.

General Financial Performance of Companies In the Sector

It seems that, based on the typical company data, the demand, from retail customer and international market, for screen protection products has been solid and gradually growing in the past three years (3-7% annual growth rate).

The typical companies’ gross margin is about 32-34%.  With 20-24% SG&A as percentage of sales, the typical operating margin is about 9-10%.

The typical average stock price/cash flow ratio is about 13.

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