New models from international vendors and increased outsourcing of higher-end models pushed Taiwanese mobile phone shipment value up to US$1.1 billion; ASP (Average Selling Price) grew to US$78.6. GPRS (General Packet Radio Service) phones, which are driving the adoption of multimedia functionality, are gradually becoming increasingly mainstream, and with Motorola, Sony Ericsson, Panasonic, and Siemens rolling out color display or built-in camera phones, share of GPRS models has increased to 36%. Smartphone shipment share rose to 5.9% as orders from Motorola and Western European carriers increased.

Over the course of 2003, despite SARS (Severe Acute Respiratory Syndrome) and inventory problems in China seen during the first half of 2003, Taiwanese makers accommodated international vendors product diversification plans and continually rolled out new models in the second half of 2003. As a result, annual shipment volume grew close to 50% to reach approximately 42.9 million units in 2003. Shipment value tallied 53% growth to hit US$3.1 billion, reflective of Taiwanese makers deeper involvement in multimedia-oriented mobile phones.

In 2004, affected by lower demand for knocked-down phones from Chinese makers paired with delayed orders from Nokia and Samsung, Taiwanese mobile phone growth is anticipated to slow; shipment volume is expected to reach approximately 55.5 million units for 30% annual growth.  In the first quarter of 2004, the industry will hit the weak retail season, and the inventories accumulated in the channels after the record-breaking volume of shipments will need to be addressed. Additionally, as Taiwanese makers face product transitions among the mid-range models produced for Panasonic and Motorola, Taiwanese mobile phone shipments are anticipated to fall to approximately 12.9 million units in the first quarter of 2004.