Taiwan makers expect limited impact on orders from consolidation of Japanese handset vendors Tweet

Taiwan-based handset makers do not expect to receive more orders from Japanese brand vendors despite continous consolidation.

At the moment, Arima Communications, Compal Communications, Inventec Appliances, Qisda and Quanta are producing handsets for Japanese vendors but orders are limited. Japan's handset companies have always kept the majority of research and development and production in house, and will likely continue to do so, said sources from Taiwan-based handset makers.

Handsets from Japanese vendors have no cost advantage and is rapidly losing market share internationally, the sources pointed out. Coupled with the contraction of the Japanese market, the vendors are merely surviving thanks to telecom carriers playing favorites in the domestic market.

However, some Japanese vendors have begun to focus on the emerging nations with closer partnership with Taiwanese makers in the 2G segment, said industry observers, noting that some of the devices are based on MediaTek solutions to improve cost competitiveness.

In early June, Fujitsu and Toshiba were reportedly to be in talks about a possible merger of their respective handset businesses. Both companies have since denied the rumors.

NEC has recently acquired Casio Hitachi Mobile Communications to form NEC Casio Mobile Communication (NCMC). In 2008, Kyocera purchased Sanyo's mobile phone business.

At the moment, Japan's main handset brand vendors are Sharp, Panasonic, NCMC, Fujitsu, Toshiba, Kyocera and Sony Ericsson.

source

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