According to research of the Taipei-based Market Intelligence & Consulting Institute (MIC) conducted as part of the ITIS project, as telecom operators and distributors were aggressively trying to lower inventories and as smart cellular device brands continued to push back shipment schedules of new models, the overall performance of the Taiwanese smart cellular device (including Smartphones and PDA phones) industry in the first quarter of 2009 was not strong. Shipment volume of the Taiwanese smart cellular device industry in the first quarter of 2009 reached 6.72 million units. Only the Apple iPhone 3G - manufactured by Foxconn - experienced strong shipments. However, starting in May the industry's situation could improve. HTC's Magic and Diamond 2 series, the Palm Pre produced by Foxconn and the new iPhone series of Apple will be rolled out. As smart cellular device brands are expected to aggressively place orders with the Taiwanese industry in the second quarter, the industry is expected to experience sequential growth of 40% and year-on-year growth of 30%.
The Android platform is undoubtedly one the hottest topics in the global industry in 2009. As for Taiwanese companies, HTC has a technology lead of more than six months in terms of developing Android products. If the Magic model will also blossom, and if the model is promoted in cooperation with global mobile operators, it is expected that it will grow significantly compared to the first-generation G1. Furthermore, Asus and Acer, which have adjusted business models or have just entered the smart cellular device field, have also expressed their strong interest in developing Android-based products.
According to MIC Industry Analyst Edward Lin, "excluding HTC which has been successful in operating its own brand, opportunities for other Taiwanese makers to develop Android platform products currently are still unclear. This is mainly due to the fact that brands which support Android, such as Samsung and Motorola, still focus on in-house R&D and production, releasing few orders to Taiwanese manufacturers." Furthermore, the open-source characteristics of Android also mean that makers have to make significant investments in R&D and put considerable effort into aligning software and hardware structures. "Internal resources of most Taiwanese ODM (Original Design Manufacturing) companies are still mostly concentrated in hardware design, and in the short term it will be difficult to change this situation. Therefore, currently Taiwanese companies which have opportunities to develop Android products are still companies such as HTC and Acer, which have sufficient R&D resources and capital", said Mr. Lin.
More information can be found in the following MIC report: The Taiwanese Smart Cellular Device Industry, 2Q 2009
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About MIC
Market Intelligence & Consulting Institute (MIC), 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
About ITIS
The Industry and Technology Intelligence Services (ITIS) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector.