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Taiwan basic handset shipments hit 10.21M in Q1

Posted: 28 May 2009 ?? ?Print Version ?Bookmark and Share

Keywords:Taiwan basic phone? handset shipment? W-CDMA?

Shipments of the basic/feature phones in Taiwan hit at 10.21 million units in Q1, according to a Market Intelligence & Consulting Institute (MIC) research.

Even though shipment volume declined sequentially in the first quarter, it was still higher than the 9.42 million units originally forecast. The shipment volume did not experience the steep declines, which were forecasted, and instead slightly rebounded. This caused supply of upstream basic/feature handset component manufacturers to become tight. Meanwhile, average selling price of the Taiwan industry increased from $43 in Q4 08 to $45 in Q1 09 due to the increasing shipment share of Edge products and the fact that some ultra value-line models reached end of life (EOL).

The Taiwan basic handset industry took in rush orders in Q1, with companies such as CCI and Arima receiving orders from emerging markets including China, Brazil, Russia and India. According to MIC industry analyst Eddie Tsai, "at the end of November 2008, international vendors significantly reduced orders for the Taiwanese industry, causing a large-scale decline of Taiwanese basic/feature phone shipments; at the beginning of 2009, however, international vendors discovered that channel inventories started to decline. They thus released orders to their Taiwanese production partners to replenish inventories."

Regarding different system technologies, the Edge shipment share in Q1 increased to 5.4 percent as Motorola gradually focused on Edge in new basic/feature phone outsourcing. As for CDMA products, due to weakening demand Nokia became more conservative in outsourcing products, causing the CDMA shipment share in Taiwan to fall 3.5 percentage points to 13.5 percent in Q1. The CDMA decline was not related to the fact that Foxconn previously lost some Nokia engine board orders. W-CDMA shipment share fell to 0.4 percent in Q1 as some Qisda W-CDMA models reached EOL. The GSM/GPRS shipment share increased slightly in Q1 as the CDMA shipment share declined.

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