Shipments of smartphones in the Taiwan market decreased 18% on year to 8.74 million units in 2016, the first year-on-year decline in Taiwan's smartphone market, according to data compiled by IDC.

Saturating market conditions, narrowing differences between entry-level and high-end models, and blurred brand recognition were among factors contributing to decreased sales of smartphones, IDC said.

Samsung Electronics ranked as the top smartphone vendor in Taiwan in 2016 with a 22% share as the vendor managed to ramp up sales of its Galaxy S7 Edge, Galaxy Note 5 and Galaxy J7 (2016) to make up the shortfall caused by the defective Galaxy Note 7, IDC said.

Apple took the second spot with a 20% share in 2016, followed by Asustek Computer 18%, HTC 15% and Sony Mobile Communications 9%.

China-based Oppo led all vendors with the highest shipment growth rate of 204% in 2016 and took the sixth position in the Taiwan market, IDC noted.

Smartphones shipments in Taiwan are expected to stay flat in 2017 due to low replacement demand, while competition will remain keen, according to sources from local retail channels.

Samsung, Apple and Sony Mobile are expected to continue to lead in the high-end smartphone segment in 2017, while Huawei and Oppo will further ramp up their share through enhanced marketing, said the sources.