In the Taiwan market, 70% of smartphones are sold via carriers' retail outlets, which offer subsidies to alleviate the devices' high price tags, according to Sony Ericsson Taiwan.

Beginning in the first quarter with HTC and recently with Motorola and RIM, the Taiwan market is seeing more cooperation between smartphone vendors and carriers. Sony Ericsson is expected to introduce three more Android-based smartphones in the rest of 2010 with the X10 mini, which targets the female segment, set for launch at the end of May.

For the Taiwan market, the first and third quarters are traditionally the high seasons. In past years, the sales momentum from Chinese New Year usually extends for several weeks into the second quarter.

However, the momentum died down quite quickly this year and hence, it is difficult to gauge the third quarter, sources from handset distribution channels said.