Compal Communications (Compal Comm), a Taiwan-based ODM maker of handsets, will begin shipments of ARM-architecture tablet PCs to ODM clients in the first half of 2011, according to company president Stephen Chen.
Investors are concerned about whether Compal Communications is able to receive ODM orders for tablet PCs and if yes, how to collaborate with its parent company Compal Electronics which is one of the top two ODM makers of notebook PCs.
In response, Chen explained that the 7-inch segment appears to be the mainstream for tablet PCs, a situation favorable for Compal Communications to compete for ODM orders for tablet PCs. Compal Comm and Compal Electronics decided to collaborate for ODM production of tablet PCs half year ago, with the latter to be responsible for x86-architecture models and the former for only modules related to communication, Chen pointed out. But Compal Comm will be responsible for making some of ARM-architecture, such as Qualcomm platforms, tablet PC models, Chen indicated.
Since Compal Comm had been in long-term cooperation with Palm before the latter was acquired by Hewlett-Packard (HP), investors are also concerned about whether HP will release ODM orders for webOS tablet PCs to Compal Comm. In response, Chen declined to answer or comment.
Compal Comm expects to suffer a net loss for 2010, the first time since it started operation, Chen pointed out. But Compal Comm will see operation turn into profitability in 2011, with the proportion of total revenues for smartphones expected to increase from 60-65% in 2010 to 80%, Chen indicated.
Article translated by Adam Hwang
