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C-Media sales in January to see big leap on buyoant Amoi music phone sales

C-Media Electronics, which partners with handset vendor Amoi Electronics and handset chip designer Spreadtrum Communications in China on music phones, anticipates that its January sales will post a big leap due to buoyant sales of such phones.

Amoi, Spreadtrum and Kuro, a Taiwan-based music service provider, jointly announced in early January the launch of two music phones from Amoi in China. The first batch of 200,000 handsets sold out within three weeks of launch, said C-Media company chairman Eric Cheng.

Already guiding a satisfactory sales record in January, Cheng noted that the buoyant sales of the music phones should push sales to top NT$85-90 million (US$2.6-2.8 million), representing an over 60% sequential sales growth. Of the targeted amount, about NT$40-50 million will be generated from its core business and another NT$40 million will be generated from royalty payments from Realtek Semiconductor, Cheng detailed.

In light of the successful sales record of the music phones in China, Cheng noted that Amoi will roll out another eight new models to address the demand of all market segments. Prices of these handsets will range from 800-2,500 yuan (US$111-347). Besides sales being driven by Amoi's upcoming handsets, C-Media's sales will also be fueled by demand from branded-handset vendors and white-box handset vendors in China, as well as some Taiwan branded-handset vendors deploying handsets with similar music functions, Cheng stressed.

Besides handset solutions, C-Media is also partnering with Asustek Computer for the introduction of high-end sound cards in the second quarter. Since Asustek will be aggressive in the sound card segment in 2008, Cheng said corresponding sales and royalty payment contribution from the company will grow noticeably.

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