Compal Communications, Arima Communication land LG’s contract orders for smartphones

Compal Communications Inc. and Arima Communication Corp., both Taiwanese ODM (original design manufacturers) of handsets, have landed LG’s contract orders for smartphones, further boosting their position in the global supply chain of high-end handsets, according to industry sources.

In the past, Korean handset brands didn’t like to place orders
for high-end handsets with Taiwanese suppliers. However, to boost itsglobal market shares, LG has decided to reinforce cooperation with Taiwanese suppliers by ordering smartphones from Compal Communications and Arima Communication for the first time.

Another reason for LG’s willingness to turn to Taiwanese suppliers is that the brand has signed a cooperation contract with Microsoft early this year, promising to launch 50 models installed Windows Mobile operating system in the next five years. Consequently, LG decides to put the two aforementioned companies, who are dedicated to development of Windows Mobile-powered smartphones, atop its smartphone supplier list.

Skott Ahn, CEO of LG’s mobile communication division, recently noted that LG is planning to rank among the world’s top-two handset brands by sales volume in 2012. Last year, the brand sold over 100 million handsets worldwide as the third-largest brand in the line.

Arima has secured orders from LG, Sony Ericsson and Acer for a total of 13 models, and projected its annual shipment to hit 13 million units this year, very likely to turn around in business operations. Of the 13 models, five low and medium-end ones are ordered by LG and will be mainly sold in India and Latin America.

In the meantime, Arima is designing a smartphone built with MediaTek Inc.’s handset IC (integrated circuit) chips and will ship the product, which will be also fine-tuned to suit either Microsoft’s Mobile Windows or Google’s Android operating system, to LG in the first quarter of next year as the earliest.

On the other hand, Compal Communications is soon to start delivery of smartphones to LG, and expects its shipment of handsets to peak in the fourth quarter of this year.

Source & Copyright: CENS