Taipei, Dec. 24, 2008 (CENS)--Some 1.74 million cellphones were sold in Taiwan in the third quarter, up 8% from the previous three months, but down an annual 4%, according to IDC Taiwan.

IDC`s statistics showed that shipments of combination devices, including personal digital assistant (PDA) phones and smartphones, declined 9% in the third quarter from that of last year, while that of typical handsets dropped 4% YoY.

The third quarter is a traditional high season for handset sales and figures showed that the Taiwan market suffered from the unfavorable business climate resulting from the global financial turmoil and weakened consumer confidence. John Cheng, market analyst of IDC Taiwan`s telecom services, pointed out that handsets priced under NT$10,000 (US$303 at US$1: NT$33) grabbed over 90% of the market in Taiwan during the period, compared to about 85% in the past.

Shipments of 3G/3.5G handsets have exceeded 50% in the third quarter, for most major cellphone brands have been actively promoting lower-price 3.5G models as well as telecom carriers` subsidizations. Such handsets, according to IDC Taiwan, enjoyed 40%-plus YoY shipment growth.

Nokia led the Taiwan handset market in the third quarter, trailed by Sony Ericsson, Samsung, Motorola and LG. The top-five players together dominated over 90% of the total shipments.

Cheng said that the handset ASPs are expected to continue to drop due to the tepid business climate and market saturation, while shipments of combination devices might not simultaneously decline for Nokia has been promoting better-specifications, lower-priced new models.
(by Quincy Liang)