Handset component makers expect growing revenues and profits in 4Q09

Three major Taiwan-based handset component makers – Ichia Technologies, Merry Electronics and Silitech Technology – all expect their revenues and profits to grow substantially in the fourth quarter 2009, buoyed by shipments of new models by handset vendors for the year-end holiday season, according to sources at the makers.

Keypad maker Ichia Technologies expects its gross margin to continue moving upward in the fourth quarter after having seen its consolidated gross margin hike from 7.6% in the first quarter of 2009 to 10.9% in the second quarter, and 12.4% in the third quarter, the sources said.

Ichia also is looking at a 10% sequential growth in consolidated revenues for the fourth quarter from NT$1.8 billion (US$55.73 million) recorded in the third quarter, the sources said.

Headset maker Merry has estimated an increase in overall gross margin from 20.7% in the second quarter to 22-23% in the third quarter. The company expects the gross margin to stay at a relatively high level in the fourth quarter, according to the sources.

Silitech expects its keypad shipments to continue growing in the fourth quarter despite the growing popularity of touch-enabled models, the sources said. Silitech's share in the global handset keypad market is likely to top 22-25% in 2009 compared to 18.5% in 2008, the company has projected.