Telecom sector output to increase by over 5% in Q3

By Helen Ku  /  Staff reporter

Sat, Aug 17, 2013 - Page 14

The production output of the telecommunications sector is expected to grow to NT$352.9 billion (US$11.76 billion) this quarter, up 5.31 percent quarter-on-quarter and 5.94 percent year-on-year, the Industrial Economics and Knowledge Center said yesterday.

Major contributors to the output increase are routers equipped with 802.11ac modules used for mobile devices, mid-end and entry-level smartphones for major brands, and outdoor global positioning system devices, the center said in a report.

However, this quarter’s output is expected to be lower than the NT$357.6 billion posted in the second quarter of last year, because of reduced smartphone shipments, the center said.

“Taiwanese smartphone original equipment manufacturers are likely to receive additional orders for mid-end and entry-level smartphones this quarter,” the center said.

“However, given the increasing number of players in the smartphone market, local smartphone vendors will also face intensifying competition,” it said.

The telecom sector is mainly composed of telecom equipment makers, telecom service suppliers and mobile devices manufacturers.

Among them, telecom equipment output is predicted to increase to NT$110.8 billion this quarter, from NT$104.1 billion last quarter and NT$106.7 billion a year earlier.

With the launch of new mid-end and entry-level smartphones likely to boost consumers’ demand for mobile Internet access and with promotion of digital broadcasting services, telecom carriers are expected to see their sales grow quarter-on-quarter this quarter, the center said.

Telecom services output is expected to expand to NT$107 billion this quarter from NT$106.7 billion the previous quarter and NT$99.4 billion the previous year, it said.

Meanwhile, mobile devices output is estimated to reach NT$135.1 billion this quarter, compared with NT$124.3 billion last quarter and NT$127 billion a year earlier, thanks to the upcoming launches of new products from Sony Corp, Motorola Mobility Holdings, Lenovo Group (聯想) and Nokia Oyj, according to the center.

Overall, the total output for Taiwan’s telecom sector this year is forecast to edge up 0.5 percent to NT$1.35 trillion from NT$1.34 trillion last year, it said.