Taiwan's retail handset market is expected to experience an upheaval, following the government's decision to open up the market for cheaper made-in-China imports as soon as next month, market watchers said.
The new policy might see the nation's phone market in a mess in the short term, because Chinese handset makers might slash retail prices to an unreasonable level to get rid of their oversupplied mobile phones, said Tom Hsiao (
The Bureau of Foreign Trade and the Taiwan Electrical and Electronic Manufacturers Association reached an agreement last week to allow imports of Chinese-made handsets as soon as next month, saying the opening-up policy would not have a big impact on the nation's overall industrial environment.
Domestic and foreign branded handset makers, like BenQ Corp (
Huang Chih-peng (
Chinese first-tier handset suppliers, including Ningbo Bird Co (
But as their mid-range and high-end handsets, like third-generation (3G) compatible models, retail at lower prices, international giants such as Nokia and Motorola might be prompted to review their pricing strategies.
Motorola handsets accounted for nearly 22 percent of the domestic market by the end of last year, outperforming runner-up Nokia by about 5 percentage points, according to Motorola's statistics.
But Hsiao said that -- considering the fact that international brands including Motorola are capable of marketing their handsets at NT$1 per unit -- he is confident it will not be all that easy for phones made in China to secure a substantial market share here.
Scott Huang (黃思齊), managing director of Taiwan's biggest cellphone maker BenQ, appeared unfazed by the looming Chinese competition.
"I believe consumers will take into consideration more elements than just the price before deciding which handset to buy," he said during a telephone interview on Saturday.
He said a phone's brand name, design, quality, appearance and functionality all play key roles in securing a company's market share. He did not elaborate on whether the company will lower retail prices to compete head-to-head with Chinese-made handsets.
BenQ and another Taiwanese mobile phone supplier, Inventec Appliances Corp (
Therefore, Taiwan's opening-up policy will help the nation and China engage in reciprocal trading relations.
Rock Hsu (
He said that the company is currently testing the quality of the handsets manufactured by Chinese producers, so that consumers can make better informed choices on reasonably priced phone units.
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