Apple's iPhone Bright Light for Taiwan's Handset Manufacturers

The overall performance of the Taiwanese smart cellular device (including Smartphones and PDA phones) industry in the first quarter of 2009 was not strong, reports the Taipei-based Market Intelligence & Consulting Institute (MIC). Shipment volume of the Taiwanese smart cellular device industry in the first quarter of 2009 reached 6.72 million units.

Only the Apple iPhone 3G - manufactured by Foxconn - experienced strong shipments.

However, starting in May the industry's situation could improve. HTC's Magic and Diamond 2 series, the Palm Pre produced by Foxconn and the new iPhone series of Apple will be rolled out. As smart cellular device brands are expected to aggressively place orders with the Taiwanese industry in the second quarter, the industry is expected to experience sequential growth of 40% and year-on-year growth of 30%.

The Android platform is undoubtedly one the hottest topics in the global industry in 2009. As for Taiwanese companies, HTC has a technology lead of more than six months in terms of developing Android products. If the Magic model will also blossom, and if the model is promoted in cooperation with global mobile operators, it is expected that it will grow significantly compared to the first-generation G1. Furthermore, Asus and Acer, which have adjusted business models or have just entered the smart cellular device field, have also expressed their strong interest in developing Android-based products.

According to MIC Industry Analyst Edward Lin, "excluding HTC which has been successful in operating its own brand, opportunities for other Taiwanese makers to develop Android platform products currently are still unclear. This is mainly due to the fact that brands which support Android, such as Samsung and Motorola, still focus on in-house R&D and production, releasing few orders to Taiwanese manufacturers." Furthermore, the open-source characteristics of Android also mean that makers have to make significant investments in R&D and put considerable effort into aligning software and hardware structures.

"Internal resources of most Taiwanese ODM (Original Design Manufacturing) companies are still mostly concentrated in hardware design, and in the short term it will be difficult to change this situation. Therefore, currently Taiwanese companies which have opportunities to develop Android products are still companies such as HTC and Acer, which have sufficient R&D resources and capital", concluded Mr. Lin.

Posted to the site on 1st June 2009