Compal Communications projects flat handset shipments for 2009

Compal Communications has projected that its handset shipments in 2009 may not be able to exceed the amount it shipped in 2008 as the global handset market will remain challenging this year, according to company chairman Ray Chen.

Compal Communications shipped a total of 37.8 million handsets in 2008, falling short of its revised shipment target of 48 million units, the company said earlier.

However, the company expects its revenues as well as profits to sustain health growth in 2009 due to an improvement in product mix and increasing shipments of smartphones, Chen stated.

In 2008, Compal managed to expand its product mix to include CDMA and smartphones, in addition to GSM models. The company has even secured smartphone orders from a number of the leading vendors, including Motorola, Hewlett-Packard (HP) and Palm, indicated market sources .