Kyocera-Sanyo mobile phone consolidation to benefit Qisda
The consolidation between Kyocera and Sanyo Electric's handset businesses and anticipated rising role of the new entity in the market is expected to benefit Qisda with growing business.
Kyocera announced on January 21 that it will acquire Sanyo's mobile phone-related business for 40-50 billion yen (US$375-468 million) with the acquisition to be effective on April 1, 2008.
This consolidation is expected to boost Kyocera's global mobile phone ranking from ninth to seventh accordingly, said industry players from Taiwan. The new entity is expected to grab more market share in the CDMA segment, while its global market share is also expected to enlarge further. The sources project that Kyocera is likely to see its market share surpass 10% in the US, while its share in India will also grow alongside the joint-establishment of a production plant with leading EMS provider Flextronics.
Since Qisda has already established a mobile phone OEM partnership, specializing in low-cost handsets, with Kyocera, it will be the direct beneficiary of the Kyocera-Sanyo consolidation, the industry players highlighted. However, as Qisda's competitor Arima Communications, is the OEM partner for Sanyo's 2.5G handsets in Europe, they noted that there is the possibility that orders may change. They added in saying that Arima plans shipments to Sanyo in the first half of 2008.
Japan-based mobile phone vendors have had limited partnerships with Taiwan OEMs in the past 2-3 years. However, the recent consolidation trend in the mobile phone industry in Japan, as evident in the cases of Kyocera-Sanyo and NEC-Panasonic Mobile Communication, suggests that Taiwan mobile phone OEMs should discover more opportunities ahead.
source
Kyocera announced on January 21 that it will acquire Sanyo's mobile phone-related business for 40-50 billion yen (US$375-468 million) with the acquisition to be effective on April 1, 2008.
This consolidation is expected to boost Kyocera's global mobile phone ranking from ninth to seventh accordingly, said industry players from Taiwan. The new entity is expected to grab more market share in the CDMA segment, while its global market share is also expected to enlarge further. The sources project that Kyocera is likely to see its market share surpass 10% in the US, while its share in India will also grow alongside the joint-establishment of a production plant with leading EMS provider Flextronics.
Since Qisda has already established a mobile phone OEM partnership, specializing in low-cost handsets, with Kyocera, it will be the direct beneficiary of the Kyocera-Sanyo consolidation, the industry players highlighted. However, as Qisda's competitor Arima Communications, is the OEM partner for Sanyo's 2.5G handsets in Europe, they noted that there is the possibility that orders may change. They added in saying that Arima plans shipments to Sanyo in the first half of 2008.
Japan-based mobile phone vendors have had limited partnerships with Taiwan OEMs in the past 2-3 years. However, the recent consolidation trend in the mobile phone industry in Japan, as evident in the cases of Kyocera-Sanyo and NEC-Panasonic Mobile Communication, suggests that Taiwan mobile phone OEMs should discover more opportunities ahead.
source
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