High-end, Value-line Models Driving Taiwan's Smartphone Shipments
According to Taiwan based, MIC (Market Intelligence Center) the shipment volume of the Taiwanese smart cellular device (including Smartphones and PDA phones) industry is forecasted to reach approximately 6.6 million and 8.4 million units respectively in the second and third quarters of 2008. Sequential growth rates are projected to reach 7.7% and 26.7% in these two quarters, while year-on-year growth rates are expected to reach 114.4% and 71.5%.
Overall, the Taiwanese smart cellular device industry is projected to develop in two diverging directions, including high-end and value-line models, with mid-range products gradually phasing out. High-end products, equipped with comprehensive wireless functionalities and personal data management, are expected to target mature markets. Value-line products, boasting multimedia entertainment and basic office applications, are expected to target the emerging markets and encroach upon parts of the high-end feature phone market.
Furthermore, value-line Smartphones seem to carve out a niche in the mature markets. Impacted by the US subprime mortgage crisis and depreciation of the US dollar, consumer spending in the mature markets has weakened considerably. For example, Palm's Centro Smartphone, sold bundled with Sprint's US$99 package, has garnered strong sales performance and made a considerable contribution to Palm's revenue.
Similarly, high-tagged Smartphones have also broken into the emerging markets. For example, through collaboration with Reliance Communications, Taiwanese makers have launched two CDMA Smartphones in India, priced at Rs16,500 (US$389) and Rs19,500 (US$460), respectively.
These two examples go to show that high-end business customers in the emerging markets and value-line customers in the mature markets have become new growth drivers for the overall smart cellular device industry. These two segments are projected to play very important roles in the expansion of the industry in the future.
Posted to the site on 6th June 2008
