Compal Communications expects its shipments of smartphones to reach 10 million units in 2013, powered by the fast growing smartphone industry in China and its growing number of clients, according to company chairman Ray Chen.

Compal shipped nine million smartphones in 2012, falling short of its goal of shipping 9.6 million units in the year. However, revenues were up 147% to NT$45.4 billion (US$1.56 billion) in 2012.

Additionally, Compal also managed to swing back to profitability in 2012 after posting losses in the previous two years, buoyed by its efforts to migrate to the production of smartphones from feature phones, Chen noted.

Smartphone shipments to clients other than Nokia in China, Japan and the US accounted for 30% of Compal's total shipments in the fourth quarter of 2012, said Compal, adding that it aims to lower the shipment ratio to a single client below 50% in 2013.

In response to market speculation indicating that Microsoft may launch own-brand smartphones, Chen said he is positive about the possible development as he believes that the move by Microsoft would help to expand the size of the Windows Phone market, and that Compal would benefit from such a development.

Given the growing popularity of smartphone models with 5-inch or even larger displays, Compal does not rule out the possibility of venturing into the production of tablets to meet customer demand, Chen revealed.