Arima Communications targets strong annual handset shipments in 2008 on Sony Ericsson and LGE orders
Despite weak performance in 2007, Arima Communications is expected to grow its handset shipments to 14-16 million units in 2008 buoyed by strong partnerships with Sony Ericsson and LG Electronics (LGE), according to handset component makers.
Arima saw its annual handset shipments decline 27% sequentially to 9.5 million units in 2007 with consolidated revenues for the full year expected to also drop by 22% to NT$19.5 billion (US$60.2 million), noted market sources.
The component makers also revealed that Arima has set its shipments goal for next year. The company will ship 4-5 new handsets to Sony Ericsson with shipments to reach more than 10 million units. Meanwhile, the company will also make three new handsets for LGE with shipments of more than two million units, the makers pointed out.
In addition to one million smartphone orders from i-mate, WMG and E-Ten, the company is also expecting orders from customers in Japan and Thailand in 2008.
Sony Ericsson originally planned to push low-cost (under 100 Euro) handsets in 2007-2008. However, as the sales were below expectations, the company is revising its products orientation and channel strategy, according to the sources. Sony Ericsson will continue to team up with Arima and Chi Mei Communication Systems (CMCS) next year and Unihan Technology, Asustek Computer's spun-off subsidiary, is expected to become the new supplier for Sony Ericsson, the sources indicated, adding that Arima will remain the company's largest handset ODM maker.
LG accounted for 20% of Arima's overall handset shipments in 2007 and the Taiwan maker expects to increase the proportion to 30% to reduce the risk of focusing too much on Sony Ericsson, the sources noted. Arima's shipments proportion to Sony Ericsson will decrease to 60% next year, compared to 70% in the past, the sources said.
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Arima saw its annual handset shipments decline 27% sequentially to 9.5 million units in 2007 with consolidated revenues for the full year expected to also drop by 22% to NT$19.5 billion (US$60.2 million), noted market sources.
The component makers also revealed that Arima has set its shipments goal for next year. The company will ship 4-5 new handsets to Sony Ericsson with shipments to reach more than 10 million units. Meanwhile, the company will also make three new handsets for LGE with shipments of more than two million units, the makers pointed out.
In addition to one million smartphone orders from i-mate, WMG and E-Ten, the company is also expecting orders from customers in Japan and Thailand in 2008.
Sony Ericsson originally planned to push low-cost (under 100 Euro) handsets in 2007-2008. However, as the sales were below expectations, the company is revising its products orientation and channel strategy, according to the sources. Sony Ericsson will continue to team up with Arima and Chi Mei Communication Systems (CMCS) next year and Unihan Technology, Asustek Computer's spun-off subsidiary, is expected to become the new supplier for Sony Ericsson, the sources indicated, adding that Arima will remain the company's largest handset ODM maker.
LG accounted for 20% of Arima's overall handset shipments in 2007 and the Taiwan maker expects to increase the proportion to 30% to reduce the risk of focusing too much on Sony Ericsson, the sources noted. Arima's shipments proportion to Sony Ericsson will decrease to 60% next year, compared to 70% in the past, the sources said.
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