Taiwan-based smartphone ODM firms Compal Communications and Arima Communications are likely to see on-quarter revenue growth in the second quarter due to new smartphones from Sony Mobile.
However, due to falling orders from Nokia, Compal reported first-quarter revenues of NT$5.072 billion (US$169 million), showing an on-year decrease of 68%.
In contrast, due to steady orders from Sony and NEC, Arima reported first-quarter revenues of NT$5.579 billion, up 15% on year.
Taiwan handset makers noted that after the Lumia 800 and Lumia 510, Nokia has yet to issue new orders to Compal, despite the firm's eagerness. Nokia recently introduced two entry-level and mid-range smartphones, the Lumia 720 and Lumia 520, and the two models were both developed in-house. However, with the expanding product line, Nokia is likely to continue cooperating with Compal. The firm is also working with Sony Mobile and shipments of the Xperia L will begin in April.
Sony Mobile has been expanding cooperation with Taiwan-based makers since the second half of 2012. The firm has been cooperating with Arima on developing entry-level and mid-range smartphones on Google's Android platform. Shipments of the Xperia E, developed by the two firms, began in the first quarter.
Sony Mobile is likely to account for more than 50% of Arima's revenues. In addition, the firm has been cooperating with Motorola Mobility and the latter plans to introduce two new Android smartphones. In 2013, Arima's handset shipments are likely to reach 10-12 million units, with smartphones in the majority. Arima's smartphone shipments were 2.4 million units in 2012.
Due to uncertain orders from Nokia, handset shipments from Compal are likely to reach 10 million units in 2013. In addition, revenues from Nokia are expected to account for 70% of Compal's total revenues in 2013, a drop compared to 88% in 2012.
Article translated by Jackie Chang
