Brand-conscious Taiwanese may shun plans by Chinese handset makers to put cellphones from across the Strait in their hands, analysts said yesterday.
"With the local cellphone market dominated by foreign brands such as Nokia and Motorola, Taiwanese are very unfamiliar with Chinese brands and therefore the [expected] acceptance level will be relatively low," said Ann Liang (
Gartner is an information-technology industry research firm.
"I don't regard Chinese handset companies as potential competitors in Taiwan," she said.
Liang made the remarks after a local electronics distributor last week signed a dealership contract with China-based Bird Co (
"We've signed a contract with Bird, making us the company's local distribution agency," said Sabrina Wu (
The company is the local representative for France-based cellphone maker Sagem SA.
Last year Bird sold about 3 million handsets in China, accounting for 5.5 percent of the nation's cellphone market, according to Gartner.
Local Chinese-language media also speculated yesterday that China's No.1 handset manufacturer -- TCL Mobile Communication Corp (TCL,
An agreement to sell TCL cellphones in Taiwan would still require approval from the Taiwan government.
According to the Board of Foreign Trade under the Ministry of Economic Affairs, the government will soon lift its ban on the import of handsets from China.
The market may be opened to Chinese handsets in March, said Chen Pu-lin (陳步林) an official from the Ministry of Economic Affairs.
In accordance with WTO rules, the import ban must gradually be lifted.
Taipei will initially only allow entry-level Chinese cellphones to be shipped into Taiwan, while advanced or high-speed transmission GPRS (general packet radio system) handsets will not be allowed ashore.
Despite a lack of confidence by the public in Chinese brand quality, Wu was confident of success.
"We understand most Taiwanese lack confidence in using Chinese-brand name electronics, therefore we will put more efforts on the retail side," Wu said.
St. Williams will push sales staff to aggressively promote Bird handsets to the public.
"Most consumers are passive and inclined to accept what sales people recommend," Wu said.
Two folding handset models from Bird will initially be introduced to Taiwan, with prices ranging between NT$8,000 to NT$10,000 per unit.
"Compared with similar models from other manufacturers, Bird handsets are about NT$2,000 cheaper," Wu said.
The Chinese brands will compete directly with phones from BenQ Corp, Taiwan's largest handset company (
An executive from BenQ said he was not concerned about the new competition.
"Price is not the only factor affecting consumer buying habits," said Jerry Wang (王文燦), vice president of BenQ's marketing development office.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to