- Taiwanese cable modem shipment volume reached approximately 3.5 million units in the third quarter of 2004, advancing 97.2% year-on-year and 36.3% sequentially. Shipment value exploded 110.3% year-on-year to US$139.7 million, a 41.8% sequential rise.
Shipment volume growth was in part a result of steady broadband subscriber growth in North America and Western Europe. Driven by strengthening demand, brand-name equipment vendors such as Thomson, SA, and Arris, increased orders to first-tier Taiwanese makers such as Asustek and Askey. Furthermore, leading cable modem vendor Motorola as well as Terryon both expanded outsourcing to Taiwanese players. In addition, as cable TV operators in North America aggressively launched VoIP (Voice over Internet Protocol) services, EMTA (Embedded Multimedia Terminal Adapter) shipments added 573,000 units from the second quarter.
Share of data cable modem shipments, which comprise the bulk of total shipments, dropped from 81% in the second quarter to 71% in the third quarter. EMTA shipment share also climbed from 13% to 24% in the third quarter, pushed by rising demand in the North American market. With drastic changes in product mix, ASP (Average Selling Price) picked up 4% in the third quarter of 2004.
In the fourth quarter of 2004, cable modem subscriptions in North America, Western Europe, Asia, and Latin America should be on a steady growth track. Increased orders from Motorola and Terryon are also expected to benefit Taiwanese shipments. However, the rate of increase in EMTA shipments has far outpaced VoIP subscriber growth, and whether shipment volume continues to grow will be largely determined by future VoIP subscriber growth. In light of the above factors, Taiwanese cable modem shipment volume is forecast to reach approximately 3.9 million units in the fourth quarter of 2004.