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Handset component suppliers turn conservative about 4Q

Most Taiwan-based handset component suppliers who had previously remained optimistic about their shipment outlooks for the fourth quarter of this year have now become more conservative over business prospects, predicting their fourth-quarter revenues to stay flat or even decline slightly from the previous quarter.

Affected by the fast declining economic conditions worldwide, international handset vendors are placing component orders more cautiously, said sources at handset keypad and acoustic solutions suppliers.

Ichia, a supplier of handset keypads and flexible PCBs, expects its fourth-quarter revenues to be flat at NT$2.54 billion (US$76.05 million) it recorded in the third quarter. The company predicted earlier that its revenues would hit the peak for this year in the fourth quarter.

Due to the slow orders from some branded handset vendors, keypad maker Silitech Technology now projects its consolidated revenues to suffer a 10% sequential decline in November, making the October revenues the company's highest for this year.

Merry Electronics, a supplier of handset-use acoustic solutions, stated that the company may not be able to enjoy the peak-season effect in the fourth quarter due to declining orders for its hands-free headsets. According to its internal estimates, consolidated revenues for the fourth quarter are expected to slide 10% sequentially, said company sources.

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