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Entry-level handset markets to enjoy 24% annual growth through 2014, says ABI Research

Buoyed by increasing orders from LG Electronics (LGE) and an easing in component supplies, Taiwan-based handset maker Arima Communications is expected to see its handset shipments for 2009 peak in the third quarter, reaching 3.5-3.9 million units and representing a 10-20% growth from the previous quarter, according to an estimate by industry sources.

Although Arima's handset shipments are expected to decline slightly to 3-3.5 million units in the fourth quarter, the company's shipments for all of 2009 will be sufficient enough to meet its annual projection of 12-13 million units, the sources added.

The company shipped 5.67 million handsets in the first half, accounting for less than 50% of its projection for the year.

LGE and Sony Ericsson contributed 50% and 45%, respectively, to Arima's total revenues in the first half of 2009. and the ratios are expected to adjust to 65% and 30% in the second half, the sources estimated.

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