- Despite facing the specter of surplus inventories in China, Taiwanese mobile phone shipment volume posted 138% year-on-year growth to reach 10.5 million units in the first quarter of 2003 as makers overcame issues stemming from generational handset shifts. Shipment value declined at only a slightly higher rate than shipment volume from the fourth quarter of 2002, as GSM Dual/Triple band handsets still constitute the mainstream for Taiwanese makers. Consequently, ASP witnessed a minimal decline, falling to just under US$70.
Sony Ericsson will likely step up orders to Taiwanese manufacturers in a bid to reclaim between 7% to 10% worldwide market share. Outsourcing will allow Sony Ericsson to expand product lines in response to Nokia, Motorola, and Samsung's full product portfolios and rapid handset rollouts. Contracts from Sony Ericsson are anticipated to constitute the major driver for Taiwanese mobile phone industry development in the first half of 2003.
Shortening handset life cycles and wider varieties of models outsourced by international brand-name vendors are expected to test Taiwanese manufacturers' abilities to more rapidly overcome new model learning curves. The second quarter will also be a key period for Taiwanese makers to address the transfer to models with color displays, Java, and MMS/EMS. In addition, with a generational shift occurring in the second quarter of 2003, one quarter earlier than during 2002, Taiwanese mobile phone second quarter shipment volume is expected to fall to 9.3 million units.