Taiwan’s smartphone makers continued to feel the pinch after local market shipments in the third quarter fell more than 3 percent from a year earlier, US-based International Data Corp (IDC) said on Thursday.
Weakening demand resulting from consumers postponing replacing their phones led to Taiwan’s smartphone shipments falling 3.1 percent from a year earlier to 1.26 million units in the July-September period. This drop follows a 4.6 percent year-on-year decline in the second quarter, when shipments stood at 1.05 million units, IDC said in a statement.
However, the average selling price of smartphones in the third quarter rose 3.3 percent from a year earlier, indicating that Taiwanese smartphone manufacturers were keen to focus on producing high and medium-end devices with a higher price tag to strengthen their competitive edge in the market, IDC said.
Photo: CNA
In the third quarter, shipments of electronic wearable devices in Taiwan totaled 1.25 million units, up 2.4 percent from a year earlier, with shipments of smartwatches growing 10.2 percent from a year earlier to 300,000, it said.
Earbud shipments in Taiwan fell 2.9 percent to 770,000 units in the third quarter from a year earlier, with shipments of devices using true wireless stereo technology accounting for 92.1 percent of total earbud shipments.
The earbud segment was affected by falling consumer consumption, while demand for earwear related to smartphones also weakened, dealing a blow to the entire earbud industry, IDC said.
The smartphone market in Taiwan would continue to weaken in the wake of unfavorable economic conditions and the slow replacement of devices by consumers, with shipments next year expected to fall 2.3 percent year-on-year to 4.86 million units, IDC Taiwan associate analyst Joanne Chiang (江靖婷) said.
Due to changing foreign exchange rates, increasing costs and a continued focus on mid-range and high-end products, the average selling price is expected to grow 2.2 percent next year, she said.
Chiang also predicted shipments of wearable devices in Taiwan would grow 1.1 percent to 3.84 million units next year, with smartwatch shipments expected to rise 4.7 percent from a year earlier to 950,000 units next year.
SEMICONDUCTORS: The firm has already completed one fab, which is to begin mass producing 2-nanomater chips next year, while two others are under construction Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes. The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung. TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs. To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints. The P4 and P5
Printed circuit board (PCB) maker Global Brands Manufacture Ltd (精成科技) is to fully acquire Japanese peer Lincstech Co for about NT$8.4 billion (US$256.9 million) as the company aims to add high-end PCBs to its PC-centric product lineups. The company also expects the deal to help expand its manufacturing sites in Southeast Asia, as local firms diversify to mitigate geopolitical risks. “The acquisition will mean an important step for the company to further expand its presence in Southeast Asia and globally,” Global Brands Manufacture chief financial officer Weng Chia-yu (翁家玉) said at a news conference in Taipei yesterday. The company has set up manufacturing
DOWNFALL: The Singapore-based oil magnate Lim Oon Kuin was accused of hiding US$800 million in losses and leaving 20 banks with substantial liabilities Former tycoon Lim Oon Kuin (林恩強) has been declared bankrupt in Singapore, following the collapse of his oil trading empire. The name of the founder of Hin Leong Trading Pte Ltd (興隆貿易) and his children Lim Huey Ching (林慧清) and Lim Chee Meng (林志朋) were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed. The younger Lims were directors at the company. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte Ltd are the trustees, according to the gazette. At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading
The growing popularity of Chinese sport utility vehicles and pickup trucks has shaken up Mexico’s luxury car market, hitting sales of traditionally dominant brands such as Mercedes-Benz and BMW. Mexicans are increasingly switching from traditionally dominant sedans to Chinese vehicles due to a combination of comfort, technology and price, industry experts say. It is no small feat in a country home to factories of foreign brands such as Audi and BMW, and where until a few years ago imported Chinese cars were stigmatized, as in other parts of the world. The high-end segment of the market registered a sales drop
RSS