Compal Communications may cut handset shipment guidance again
Sources at Taiwan handset component makers have indicated that Compal Communications may cut its handset shipments target to 40-41 million, the company already reduced its annual target in June.
Compal lowered its handset shipments target from 60 million to 48 million in June. The company is likely to ship about 20-21 million handsets in the second half of the year, meaning annual shipments may only reach 40-41 million units, the sources said. Compal is expected to have its monthly shipments peak during September and October at an average of four million units.
Despite that Motorola managed to keep its third-place ranking in the second quarter, and more than 30 new handsets are set to launch in the second half of 2008, Compal is not expected to benefit much, the sources commented, because it is still focusing on production of W-series handsets for Motorola, instead of the new models, they explained.
Whereas for its orders from Nokia, the sources noted that sales contributions will be single digits only in 2008 as annual shipments to the Finnish handset maker will be no more than two million units. However, shipments of 3G handsets to Nokia have ramped up to 300,000-400,000 per month, following the launch of three new 3G models.
Also, shipments of new handsets to partners such as LG Electronics and Sony Ericsson will only start from 2009, the sources noted.
In addition to Foxconn International Holdings (FIH) and Chi Mei Communication Systems (CMCS), the two major competitors of Compal, the sources also noted that rising competition is coming from Qisda. Since Qisda has forged a partnership with Motorola on 3G handset production with bookings to hit several million units in 2009, a stronger threat is expected to be seen.
Compal lowered its handset shipments target from 60 million to 48 million in June. The company is likely to ship about 20-21 million handsets in the second half of the year, meaning annual shipments may only reach 40-41 million units, the sources said. Compal is expected to have its monthly shipments peak during September and October at an average of four million units.
Despite that Motorola managed to keep its third-place ranking in the second quarter, and more than 30 new handsets are set to launch in the second half of 2008, Compal is not expected to benefit much, the sources commented, because it is still focusing on production of W-series handsets for Motorola, instead of the new models, they explained.
Whereas for its orders from Nokia, the sources noted that sales contributions will be single digits only in 2008 as annual shipments to the Finnish handset maker will be no more than two million units. However, shipments of 3G handsets to Nokia have ramped up to 300,000-400,000 per month, following the launch of three new 3G models.
Also, shipments of new handsets to partners such as LG Electronics and Sony Ericsson will only start from 2009, the sources noted.
In addition to Foxconn International Holdings (FIH) and Chi Mei Communication Systems (CMCS), the two major competitors of Compal, the sources also noted that rising competition is coming from Qisda. Since Qisda has forged a partnership with Motorola on 3G handset production with bookings to hit several million units in 2009, a stronger threat is expected to be seen.
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