LG Electronics plans to raise the ratio of outsourced handsets in 2012 and is likely to release more smartphone orders to Taiwan-based ODMs, particularly Foxconn International Holdings (FIH), according to industry sources.
LG aims to ship 80 million handsets in 2012, of which 35 million units will be smartphones, the sources noted, adding that the Korea-based vendor currently outsources 5% of its total handset production to ODMs and plans to ramp up the ratio to 8-9% by year-end 2012.
FIH, which has seen its ODM orders decline sharply due to decreasing market share of its primary clients, will be interested in taking up orders to be released by LG, the sources indicated.
FIH has recently teamed up with Sharp for the development of smartphones targeting the China market, and the new orders from LG will help bring a turnaround for FIH, the sources commented.
Parent company Foxconn Electronics (Hon Hai Precision Industry) and FIH both declined to comment on clients or speculated orders.
Article translated by Steve Shen
