Shipments of smartphones by Taiwan-based handset brands and ODMs are expected to reach 12.6 million units in the second quarter of 2016, down 9.7% sequentially and 42.9% on year, Digitimes Research has estimated.

Brand vendors HTC, Asustek Computer and Acer will see their combined shipments grow 15% sequentially in the second quarter, but ODMs including Compal Electronics, the Foxconn Group, Arima Communications and Wistron will see their shipments decline by 15% during the same period.

HTC is expected to ramp up its shipments to 3.2 million units in the second quarter from 2.5-3 million of a quarter earlier, buoyed by the release of its new flagship HTC One M10 and other mid-range models.

Asustek is expected to ship 4.4 million smartphones in the second quarter as it will begin to ship its new ZenFone 3 series products in June, while demand for its ZenFone 2 models still remain strong.

However, decreasing ODM orders will contribute to a decline in overall smartphone shipments by Taiwan's brands and ODMs in the second quarter, said Digitimes Research.

Combined shipments of ODM models by Arima Communications, Compal Electronics and the Foxconn Group to Sony Mobile Communications in the second quarter will be comparable to those shipped a quarter earlier.

But Compal alone is expected to see its overall shipments slip to 2.3 million units in the second quarter compared to 3.7 million shipped in the previous quarter due to decreased orders from LeTV, Digitimes Research said.