According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, sales volume in the Taiwanese mobile phone market is expected to reach 1.87 million units in fourth quarter of 2006, up 8.4% year-on-year but down 1.4% sequentially. Sales for the full year 2006 are expected to amount to 7.3 million units. Starting in the fourth quarter of 2006 and early 2007, various operators will begin to prepare for upgrading their networks to HSPDA (High Speed Downlink Packet Access). It is expected that in the second half of 2007 the Taiwanese market will enter into the 3.5G era.

The scale of the Taiwanese mobile phone market amounted to 1.82 million units in the third quarter of 2006, up 12% year-on-year. Growth momentum mainly came from special subsidized prices offered by major operators to tap replacement demand during the summer vacation. Meanwhile, 3G mobile phones' share of the market has been picking up gradually, with the share of WCDMA (Wideband Code Division Multiple Access) models hitting 11% in the third quarter. As the number of 3G models accounted for 16% of all mobile phone models available on the market in the third quarter - up from 10% in early 2006 - , and as two channel players Aurora and Arcoa successively launched MVNO (Mobile Virtual Network Operator) services, demand for 3G services featuring low rates was stimulated.

Moreover, 3G handsets' prices have dropped to NT$6,000 (US$180.2; US$1=NT$33.3) - NT$7,000 (US$210.2) on average, approaching a range acceptable to consumers. Mobile phones' ASP (Average Selling Price) slipped to NT$6,044 (US$181.5) in the third quarter, and total market value reached approximately NT$11.4 billion (US$342.3 million), due to price cuts for 3G models and increased sales of Chinese brands' models.

More information can be found in the following MIC report.  The Taiwanese Mobile Phone Market, 4Q 2006

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