Motorola Mobility and LG Electronics reportedly will release new ODM smartphone orders to Taiwan-based handset makers, a move which help Taiwan handset suppliers ease their over reliance on orders from single clients, according to industry sources.
Motorola has teamed up with FIH Mobile for ODM production of Android-based smartphones and is also in talks with other Taiwan-based suppliers to release more ODM orders, the sources revealed.
LG stopped ODM orders to Taiwan-based handset makers in 2012, but has recently been in contact with a number of Taiwan's ODMs for possible cooperation, as the Korea-based vendor has set up an OEM business unit aiming at strengthening its competitiveness in the entry-level to mid-range smartphone segment in emerging markets, said the sources.
Taiwan-based ODMs, including FIH Mobile, Compal Communications and Arima Communications are competing fiercely against each other for orders from Motorola and LG in order to expand their client bases, indicated the sources.
Currently, Compal is counting on Nokia for over 70% of its total sales, while Arima also has about 70% of its orders coming from Sony Mobile Communications, the sources noted. |