- Taiwanese DSL (Digital Subscriber Line) equipment shipment volume reached approximately 8.8 million units in the third quarter of 2004, climbing 74.1% year-on-year and 5.7% sequentially. Shipment value grew 59.9% year-on-year to US$303.3 million, a sequential increase of 6.4%.
In the third quarter of 2004, Taiwanese DSL shipment volume was bolstered by continued orders from major equipment vendors such as Thomson, Siemens, ZTE, and Huawei. Moreover, rate reductions by Western European operators spurred marked growth in broadband subscriptions. Askey, D-Link, ZeXel, and Comtrend shipped to these operators, also contributing to Taiwanese shipment growth.
ADSL routers comprised 64% of volume in the third quarter, compared to 50% in the first, evidence that ADSL routers are increasingly replacing ADSL modems to account for the bulk of shipments. Share of wireless ADSL router shipments nudged up to 13.1% in the third quarter. Due to weakening demand in the Japanese market, Taiwanese IAD (Integrated Access Device) modem shipments hovered at the second-quarter level; yet shipment share reached 7.7% driven by growing demand in France, Germany, and Italy. Although ADSL router prices threatened to drop, share of devices integrating additional functionality climbed, pushing up shipment value. ASP (Average Selling Price) rose to US$34.6 in the third quarter.
In the fourth quarter of 2004, DSL subscriber growth is expected to continue at a similar pace seen in the third quarter, which likely ensures Taiwanese makers orders from brand-name vendors. Share of higher-end devices is also anticipated to increase, further energizing shipment value. However, as shipments for major bid-market contracts are being concluded, Taiwanese DSL shipments are forecast to see a limited increase of 2% sequentially, reaching approximately 8.9 million units in the fourth quarter.