Nokia and Foxconn International Holdings (FIH) ODM to OEM Orders
digitimes.com
>> Handset Makers Step up CDMA Development
Daniel Shen, Taipei; Rodney Chan
DigiTimes.com
6 November 2006
With margins for GSM handsets declining and orders for 3G and smart phones yet to pick up, handset makers are looking upon CDMA handset production to offer a niche market with big opportunities, according to industry sources.
Foxconn International Holdings (FIH) and Compal Communications have already received CDMA handset orders from Nokia and Motorola, respectively, the sources said.
FIH has received ODM orders from Nokia for 3-4 CDMA models for 2006, the sources revealed. Total shipments originally had been planned to reach five million units in 2006, but as Nokia has adjusted its market strategy and FIH has also had issues concerning product development, shipments will only reach 2-3 million units, the sources said.
However, as Nokia is expected to increase outsourcing for CDMA phones, its collaboration with FIH may grow, with FIH's CDMA shipments to Nokia likely to reach five million units in 2007, the sources remarked.
Compal Communications received ODM orders from Motorola, the sources said without providing any details.
Growth in the CDMA segment seems to be lagging that for GSM, GPRS and WCDMA, as some CDMA carriers are shifting their operations to GSM, and high royalties paid to Qualcomm for CDMA technology have been an issue, the sources said.
However, as competition for CDMA handsets among Taiwan's handset makers has yet to heat up, CDMA is offering a niche market for the makers to develop, the sources said.
FIH, Compal Communications, and Inventec Appliances have signed contracts with Qualcomm, while Foxlink and Wistron NeWeb have adopted VIA Technologies' solution, the sources said.
LG Electronics is said to be assessing the possibility of releasing ODM orders for CDMA phones, with FIH and Compal standing the biggest chances of winning the LG orders, the sources added. ###
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