According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, owing to rollouts of new models by Motorola, LG, and Sony Ericsson, Taiwanese shipment volume is expected to reach 24.5 million units in the first quarter of 2008, representing a 10.1% sequential decline. In the second quarter of 2008, CDMA shipments for Nokia are expected to begin. In addition, as Motorola is likely to expand its procurement plans, along with existing orders from Sony Ericsson and LG, Taiwanese shipment volume is forecasted to reach 106.6 million units for the full year 2008, up 14.9% in comparison with 2007. In 2008, it is anticipated that international brands will continue their investments in the development of emerging markets, creating opportunities for Taiwanese makers.

Following the growth in the third quarter of 2007, Taiwanese mobile phone shipment volume reached 27.2 million units in the fourth quarter of 2007, up 9% sequentially but down 4.5% year-on-year. For the entire 2007, Taiwanese shipment volume declined significantly to 92.8 million units, down 23.9% as compared to the full year 2006.

As Motorola, Taiwanese makers' major client, began to experience operational difficulties, market share losses, operating margin declines and inventory build-up issues, it decided to reduce orders to Taiwanese mobile phone contract makers. Shipment volume of Taiwanese makers was therefore significantly affected, according to MIC Industry Analyst Bear Hsiung. For example, Compal, one of Motorola's major partners, adjusted estimates for shipments twice in 2007 and still failed to reach its annual goal at year-end, with shipment volume reaching only 47.7 million units.

Shipment value of the Taiwanese mobile phone industry advanced 13.7% sequentially to US$1.05 billion in the fourth quarter, with ASP picking up from the previous quarter's US$37 to US$39. ASP increased mainly due to two factors: first, CDMA shipment volume of Calcomp for Indian telecom operator Reliance dropped significantly in the fourth quarter to 2.7 million units, down from the third quarter's 4.0 million units, with a sequential decline of 33.8%. Consequently, value-line products' share of total Taiwanese mobile phone shipment volume declined, preventing ASP from declining further. Secondly, Arima's WCDMA 3G mobile phones for Sony Ericsson feature high ASPs.

More information can be found in the following MIC reports:  The Taiwanese Mobile Phone Industry, 1Q 2008

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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