Compal Communications voices concerns over Motorola plans to break up handset unit
Taiwan-based Compal Communications, a major handset OEM maker for Motorola, is concerned that China-based consortiums may eventually take up the handset unit of Motorola after the US vendor said last week it is considering separating the money-losing unit, according to Rock Hsu, chairman of the Compal Group.
The China-based companies might switch the majority of handset orders from Motorola to OEM makers in China if they do take up Motorola's handset unit, Hsu stated.
However, Hsu reiterated that the order adjustment would take 1-2 years and therefore, the planned sale of Motorola's handset unit will not affect Compal's operations in 2008.
Asked if there is the possibility of Compal acquiring Motorola's handset unit, Hsu said the company currently does not have a base to operate a brand product and instead will continue to expand its pool OEM clients.
source
The China-based companies might switch the majority of handset orders from Motorola to OEM makers in China if they do take up Motorola's handset unit, Hsu stated.
However, Hsu reiterated that the order adjustment would take 1-2 years and therefore, the planned sale of Motorola's handset unit will not affect Compal's operations in 2008.
Asked if there is the possibility of Compal acquiring Motorola's handset unit, Hsu said the company currently does not have a base to operate a brand product and instead will continue to expand its pool OEM clients.
source
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