According to the beancounters at Digitimes Research smartphone sales from Taiwan fell 35 percent on year to 12.36 million units in the third quarter of 2016.
Brand vendors HTC, Asustek and Acer saw decreased orders at ODMs, including Compal, Foxconn, Arima and Wistron, for the third quarter.
Digitimes Research said that Compal and Arima began shipping new models to Sony Mobile Communications since the third quarter, the orders for the new smartphones were lower than originally expected.
Shipments from Arima to LG in the third quarter were comparable to those shipped a quarter earlier, Wistron's shipments to BlackBerry have continued to decline.
Asustek and HTC remained the top-two smartphone vendors in the third quarter but saw their shipments increase slightly on quarter.
Asustek began to ship its ZenFone 3 series products in the third quarter, but the shipment volume was lower than originally planned due to a shortage of display products. HTC started shipping Google's Pixel smartphones in September, which did not contribute much to its third quarter results.