27 August 2008
LG Electronics (LGE), ambitiously eyeing the emerging markets, has placed orders with Arima Communications for at least 12 new 2.5G handsets, with shipments to reach as many as 10 million units in 2009, according to industry sources.
LGE's partnership with Arima has been extending from entry-level and mid-range multimedia handsets to ultra low-cost models. LGE is increasing its outsourcing in line with its thrust into the emerging markets, with an aim to become the world-wide number-three handset vendor in 18 months' time, the sources said.
Arima's handset chip suppliers, MediaTek and Infineon Technologies, are also expected to benefit from the LGE orders, the sources disclosed. MediaTek chips will be used for entry-level and mid-range LGE models, and Infineon solutions will be adopted for the first time for ultra low-cost ones, the sources added.
LGE is outsourcing a minor portion of its orders to Compal Communications for handsets adopting Texas Instrument (TI) chips, while most other orders have gone to Arima, the sources said.
Arima has already secured orders for at least 12 LGE models, with shipments starting towards the end of 2008, the sources said, adding the orders have already extended to the second half of 2009.
Arima currently handles four LGE handsets, with total 2008 shipments expected to reach 3.5-4 million units. Shipments to LGE will reach 10 million units in 2009, an amount comparable to Arima's shipments to its current biggest client Sony Ericsson, the sources commented.
Arima is expected to ship 1.8 million handsets in August, driven by shipments of Sony Ericsson's T303, and September shipments may reach two million units as Arima begins to ship Sony Ericsson's K330, the sources said.
Third-quarter shipments are expected to total five million units, with shipments staying at high levels in October and November, the sources estimated, adding Arima is likely to achieve its 2008 shipments goal of 15 million units.
