Taiwan’s smartphone makers continued to feel the pinch after local market shipments in the third quarter fell more than 3 percent from a year earlier, US-based International Data Corp (IDC) said on Thursday.
Weakening demand resulting from consumers postponing replacing their phones led to Taiwan’s smartphone shipments falling 3.1 percent from a year earlier to 1.26 million units in the July-September period. This drop follows a 4.6 percent year-on-year decline in the second quarter, when shipments stood at 1.05 million units, IDC said in a statement.
However, the average selling price of smartphones in the third quarter rose 3.3 percent from a year earlier, indicating that Taiwanese smartphone manufacturers were keen to focus on producing high and medium-end devices with a higher price tag to strengthen their competitive edge in the market, IDC said.
Photo: CNA
In the third quarter, shipments of electronic wearable devices in Taiwan totaled 1.25 million units, up 2.4 percent from a year earlier, with shipments of smartwatches growing 10.2 percent from a year earlier to 300,000, it said.
Earbud shipments in Taiwan fell 2.9 percent to 770,000 units in the third quarter from a year earlier, with shipments of devices using true wireless stereo technology accounting for 92.1 percent of total earbud shipments.
The earbud segment was affected by falling consumer consumption, while demand for earwear related to smartphones also weakened, dealing a blow to the entire earbud industry, IDC said.
The smartphone market in Taiwan would continue to weaken in the wake of unfavorable economic conditions and the slow replacement of devices by consumers, with shipments next year expected to fall 2.3 percent year-on-year to 4.86 million units, IDC Taiwan associate analyst Joanne Chiang (江靖婷) said.
Due to changing foreign exchange rates, increasing costs and a continued focus on mid-range and high-end products, the average selling price is expected to grow 2.2 percent next year, she said.
Chiang also predicted shipments of wearable devices in Taiwan would grow 1.1 percent to 3.84 million units next year, with smartwatch shipments expected to rise 4.7 percent from a year earlier to 950,000 units next year.
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