Mobile phone handset demand in Taiwan is expected to fall by at least 10 percent this year to around five million, thanks to the economic slowdown and the island's rising penetration rate, sources said yesterday.
"Sales will remain barely flat this year," said Patrina Choang (常家寶), a marketing communications manager at Motorola Taiwan, adding that consumers may stop buying new handsets amidst slower economic growth.
Sources say that handset prices may also plunge by between NT$1,000 to NT$3,000 this year in response to the economic slowdown, reducing total sales volume by as much as NT$1 billion this year.
Total handset sales, reported to have grown by between 6.5 to 7 billion last year, may drop to around 5 billion, analysts said, although most of the cellphone companies remain tight-lipped on the actual projected figures.
Faced with a slowdown, the telecommunications companies are coming out with myriad strategies to cope with the downturn, including promotional packages for group buyers. They will receive discounts of between 20 to 50 percent, sources said.
Market insiders said handset sales have fallen "dramatically" in March, although they are quite reluctant to divulge the actual figures.
The good news, however, is that figures have slightly perked up during April, analysts said.
"Visibility is quite low right now," said James Huang (
Some local companies are also purchasing second-hand handsets to boost sales before the summer holidays, when purchases are expected to hit a peak, sources said.
Market observers say that sales could pick up around the end of summer when a series of new services coupled with a rapidly expanding range of mobile phone options will become available to consumers.
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