Taiwan OEM handset makers adapting to white-box handset production

Taiwan OEM handset makers have begun overhauling their strategies, aiming to shorten time to market, and allowing the development of handsets in a wide variety of designs that can remain profitable in small volumes – a business model similar to that followed by white-box handset makers in China, according to sources with the Taiwan handset industry.

In order to cope with the competition from while-box handset vendors in China, international branded handset players are now requiring Taiwan OEM partners to shorten the lead time for the introduction of a new handset to 6-9 months compared to 12-15 months required previously, the sources noted.

Taiwan makers are also stepping up their cooperation with handset vendors in China to jointly explore the 3G market, the sources said, adding that Taiwan OEM makers have until now concentrated on working with international players.

Taiwan makers are likely to focus on the production of 3G-enabled WCDMA, CDMA EV-DO models for China-based handset vendors as the 3G market in China is still far from mature, said the sources.

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