Arima Communications not impacted by LGE lowered shipment target

The impact of the downward adjustment of LG Electronics' (LGE) 2011 handset shipment goal on the operations of its Taiwan ODM partner Arima Communications will be limited, according to industry sources.

LGE has lowered its handset shipment goal for the year from 150 million units to 114 million, with the volume of smartphones being reduced from 30 million units to 24 million, according to LGE.

Arima Communications and other Taiwan-based suppliers of parts and components have noticed changes in the handset development policy at LGE since the second half of 2010 and have since then stepped up their efforts to diversify their customer base, the sources noted.

Arima has ramped up its shipments of feature-phones to Motorola Mobility and Sony Ericsson with combined shipments to the two brand vendors totaling over two million units a month recently, the sources added, noting that Arima shipped 2.21 million handsets in June.

Article translated by Steve Shen