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Arima Communications to ship 10 million handsets to LG in 2009, say sources

Arima Communications is expected to produce about 9-10 handsets for LG Electronics (LGE) in 2009 with combined shipments likely to surpass 10 million units, compared to 3-3.5 million units projected for 2008, according to information provided by sources at Taiwan handset component makers.

With increasing handset outsourcing to Arima, LGE is expected to replace Sony Ericsson as Arima's largest client in 2009, the sources contended.

To help LGE make more inroads into emerging markets such as in Latin America, Arima has begun developing low-cost models using the ULC2+ platform from Infineon Technologies, in addition to existing solutions from MediaTek, the sources noted.

Although Arima's shipments to Sony Ericsson were reduced substantially in the first half of 2008 due to a changing product strategy at the vendor, Arima will begin shipping two new handsets, the R300 and T303, to Sony Ericsson later this quarter, said the sources.

After shipping 5.46 million handsets in the first half of this year, Arima is expected to see its handset shipments top 4.5-5 million handsets in the third quarter and 4.-4.5 million units in the fourth quarter, estimated the sources.

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