TAIPEI, TAIWAN – China handset makers saw first-quarter production volume drop 12.7% from last year to 135.4 million units, reports the Market Intelligence & Consulting Institute (MIC). 
 
Sales of global first-tier vendors declined 15.7% from last quarter to 73.8 million units, as production volume fell 15.5% sequentially.
 
The drop in production follows an 8.5% sequential dip in the fourth quarter. This is the first time, since 2003, that the industry marked a sequential decline for two consecutive quarters.
 
The governments’ rural home appliance subsidy program helped stimulate shipment growth, according to MIC. China manufacturers saw first-quarter production growth drop only 5.8% to 46.8 million units.
 
Second-quarter handset production volume is forecast to increase 8.7% to 147.2 million units, reports MIC.
 
Taiwan makers experienced deeper declines on weak sales of Motorola and Sony Ericsson, as well as Apple iPhone 3G shipments. Their production volume in China for the quarter fell 35.6% sequentially to 14.8 million units. 
 
 
 
 

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