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Taiwan market: Handset sales to contract 10% in 2009, says channel operator

Handset sales in the Taiwan market are expected to decline 10% to around 6.5 million units in 2009, down from 7.2 million units sold in 2008, according to an estimate by Taiwan-based channel retailer Senao International.

However, the ratio of 3G models and smartphones sold in the Taiwan market is expected to continue rising in 2009, pushing up handset ASP (average selling price) to NT$6,200 (US$187.3) from NT$4,800 of a year earlier, Senao said.

Senao, of which Chunghwa Telecom (CHT) takes up a 31.5% stake, sold a total of 3.5 million handsets in Taiwan in 2008, accounting for almost a 50% share, said the company, adding that it aims to ship 3.3-3.4 million handsets in 2009 to maintain its market share at around 50%.

The Taiwan handset market will turn volatile in the first quarter of 2009 as handset vendors, including the first-tier vendors, are expected to cut their selling prices drastically in order to clear their inventories, according to other sources at retail channels.

In addition, some 400 handset retail shops are likely to be phased out of the Taiwan market in 2009 due to slackening demand, the sources estimated. The number of handset retail shops currently stands at around 4,000.

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