A recent cooperation agreement between Sony Ericsson and Paris-based Sagem Communication in the development of entry-level handsets may squeeze the current relationships that Sony Ericsson has with Taiwan-based ODM handset makers, including Arima Communications and Chi Mei Communication Systems (CMCS), a unit of Foxconn International Holdings (FIH), according to a March 27 Chinese-language Commercial Times report.
While the impact of the Sony Ericsson-Sagem tie-up on Taiwan makers remains to be seen, sources at local makers indicated that Sony Ericsson may outsource production of mid-priced entry-level models to Sagem, as compared to outsourcing the ultra-low-cost handsets (J100 and J120) to CMCS and the low- to mid-priced entry-level models (K200 and K220) to Arima, the paper noted.
Article translated by Steve Shen and edited by Eric Mah
