Taiwan-based handset keypad and magnesium-aluminum alloy component maker Silitech Technology has announced consolidated revenues of NT$840 million, down 20.56% on year, while consolidated revenues for the first quarter also dropped 18.77% on year to NT$2.56 billion.
Affected by the company's major clients Nokia and RIM have both performed weakly in sales, Silitech is unlikely to be able to achieve shipment growth until the second half.
Since Samsung Electronics has been expanding its share in the smartphone market, helping to increase its revenue contribution to Silitech, Samsung is expected to surpass RIM and become the second largest client of Silitech in the future. Silitech is currently supplying magnesium-aluminum alloy components to Samsung's Galaxy S II and Nokia's Lumia.
Since Nokia is set to enter China's smartphone market in the second quarter with four new Windows Phones, Nokia's decreasing orders for older models have caused Silitech to unable to achieve growth in the second-quarter revenues.
As for RIM, the company is currently evaluating its upcoming BlackBerry 10 for launch in the second half and therefore is not aggressive placing orders to its upstream supply chain.
Weak Nokia smartphone sales has impacted Silitech's performance
Photo: Shihmin Fu, Digitimes file photo
Article translated by Joseph Tsai
