Riding the wave of new handset demand running through emerging markets as well as healthy replacement demand in mature markets, global mobile phone shipments continued the strong pace. Registering an estimated 200 million units in the third quarter, worldwide mobile phone shipments are projected to reach an annual volume of approximately 772 million units by the end of 2005, a growth of 22.7% year-on-year.

According to Market Intelligence Center (MIC), a Taipei-based industry research house, Taiwanese mobile phone industry shipment volume reached 16.7 million units in the third quarter, annual shipments are estimated to reach 76.8 million units by the end of 2005, a year-on-year growth of 47 %.

Dr. Jeffrey Tai, MIC industry analyst explained, "The overall bulk of Taiwanese shipments derived from Motorola and Sony Ericsson, which accounted for 75% of all Taiwanese mobile phone output.  On the back of heavy orders from the major brands, Taiwanese first and second tier ODMs will see a sharp rise in volume. On the branded business side, shipments promise to be robust as BenQ and Inventec have received domestic sales rights in China." 

The third quarter shipment performance of second tier ODMs, such as Quanta, DARTS, and HTC, was not far behind second quarter levels, growing 3% sequentially. BenQ benefited from CDMA (Code-Division Multiple Access) supply to Latin America. CMCS experienced a volume decline as it moved into a transitional period between product refreshes.

MIC estimates that over the fourth and first quarters, due to its merger with Siemens' mobile phone division, BenQ will benefit from demand in Europe and Latin America, which will pull industry volume. More fuel will also be added by rollout of new models during the traditional peak season by the major brands.

In Motorola's case, multiple new value-line models will be entering production, while its existing value-line models are expected to see a 30% increase in production volume. Sony Ericsson will continue with current models, with new rollouts slated for the first and second quarters of 2006. As for second-tier brands, Philips will be bringing out new offerings, while mass production for NEC and Toshiba's current offerings will be peaking.

Total Taiwanese mobile phone industry volume is thus projected to hit a new peak of 31 million units in the fourth quarter of 2005, a year-on-year jump of 103% and a sequential climb of 86%. Shipment value is forecasted at just over US$1.9 billion during the same period, bringing total 2005 value to about US$4.4 billion.

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About MIC

Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english