Keypad market share gains benefit Taiwan makers Tweet

Despite the surge in popularity of touchscreen smartphones, physical keypads have gained ground in the smartphone input market.

Touchscreen models accounted for 59.1% of the total smartphone market in the first quarter of 2010, up from 2009's 45%, according to research firm Canalys. However, with strong performances by RIM's Blackberry and Nokia's E-series devices, it is apparent that many users still prefer the convenience of physical keypads, said industry sources.

Smartphones with physical keypads as the primary input account for 25-30% share of the smartphone market, the sources said, noting that if touchscreen models with keypads as a secondary option are included, the proportion jumps to 60-70%.

QWERTY keypad's market share has increased in line with the rise of smartphones in recent years, compared with traditional T9 keypads, now representing a mere 10-15% share.

The high price tag of QWERTY keypads has benefited Taiwan-based handset keypad makers. Silitech Technology saw a 9% on year increase for April 2010 consolidated revenues, and expects a 10-15% sequential rise in the second quarter.

Ichia Technologies' April consolidated revenues went up 2.9% on year, and projects second-quarter revenues to increase 20% sequentially.

Silitech: Revenues, 1Q09 - 1Q10 (NT$m)

Quarter


Sales


Q/Q


Y/Y


YTD


Y/Y

1Q-10


1,103


(6.1%)


40.1%


1,103


40.1%

4Q-09


1,175


1.2%


20.8%


4,110


(1%)

3Q-09


1,160


17.5%


3.1%


2,935


(7.6%)

2Q-09


988


25.5%


(7.3%)


1,775


(13.5%)

1Q-09


787


(19%)


(20.2%)


787


(20.2%)

*Figures are not consolidated
Source: TSE, compiled by Digitimes, May 2010

Ichia: Revenues, 1Q09 - 1Q10 (NT$m)

Quarter


Sales


Q/Q


Y/Y


YTD


Y/Y

1Q-10


481


(46.9%)


(56.8%)


481


(56.8%)

4Q-09


906


36.8%


(37.7%)


3,701


(34.2%)

3Q-09


662


(35.2%)


(59.5%)


2,796


(33%)

2Q-09


1,021


(8.3%)


(22.2%)


2,134


(16%)

1Q-09


1,113


(23.5%)


(9.4%)


1,113


(9.4%)

source

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