Tue, Dec 16, 2014 - Page 13 News List

Cost of smartphones in Taiwan forecast to drop

Staff writer, with CNA

The average price of smartphones is expected to drop by 10 percent next year as more affordable 4G-enabled models hit the local market, according to tech research firm International Data Corp (IDC).

IDC Taiwan research manager Joey Yen (嚴蘭欣) said that the average selling price (ASP) of smartphones is likely to fall to US$303 next year from US$336 this year.

While the ASP in Taiwan is expected to fall 10 percent, the global smartphone ASP would drop by an estimated 4 percent from US$297 to US$285 next year, she said.

Premium and flagship smartphones have made up a bulk of the overall market in Taiwan for many years, but this trend would be gradually reversed as major chip suppliers Qualcomm Inc and MediaTek Inc (聯發科) plan to release more low-cost 4G chips for handsets, Yen said.

The analyst estimated that smartphone shipments in Taiwan would show an annual 18 percent increase to 8.9 million units this year and growth would slow to 4 percent next year.

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