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Despite inventory pile-ups in China and the impact of SARS, Taiwanese mobile phone volume grew 1.6 million units higher than original forecasts due to stepped up outsourcing by international vendors and aggressive moves by branded makers in the Taiwanese market. Volume is estimated to have grown 22% year on year to reach 8.3 million units, declining 21% from the first quarter of 2003. First half volume grew 67% year on year to 18.8 million units, increasing at a more moderate rate than the 155% climb seen in the first half of 2002.
Second quarter shipment value is estimated to have fallen 23% from the first quarter of 2003 to US$560 million as Taiwanese makers continue to ship primarily dual/triple band GSM phones to their brand-name customers, as well as owing to a drop in demand for mid-range clamshell or color GSM/GPRS handsets from Chinese makers. Average selling price saw a sequential US$2 decline to US$67.5. With first half volume climbing to a new high, shipment value is estimated to have grown 73% year on year to hit US$1.3 billion.
In the third quarter of 2003 oversupply and slow inventory liquidations are likely to hamper orders from Chinese makers. Faster times to market and higher yield rates on the new color, camera-module, and MMS models highly demanded by international vendors will thus be key to Taiwanese maker volume growth, which is forecasted to reach approximately 9.5 million units in the third quarter of 2003.