Taiwan-based handset ODMs and component suppliers, including Arima Communications, Compal Communications, Merry Electronics and Ichia Technologies, all expect to see their revenues post sequential growth in the fourth quarter of 2012 despite seasonal factors, according to industry sources.

Arima is expected to see its revenues rally 110-126% sequentially to NT$6-6.5 billion (US$205-223 million) in the fourth quarter, buoyed by shipments of smartphones to Japan-based clients, said the sources, adding that there is also a possibility for Arima to swing back to profitability in the quarter.

Although Compal has not yet received orders for Windows Phone 8-based models from Nokia in the fourth quarter, continual ODM orders from China-based smartphone vendors will keep Compal ramping up its revenues in November and December, the sources revealed.

Merry is likely to post a double-digit growth rate in revenues in the fourth quarter, powered by shipments of handsfree headsets, new models of headsets and speakers for non-handset applications, the sources indicated.

Ichia is expected to see its revenues hit a peak in the fourth quarter thanks to increasing shipments of flexible PCBs (FPCBs) for handsets, while shipments of handset chassis by Silitech Technology will offset its declining sales of handset keypads in the quarter, the sources noted.

The planned launch of new smartphones by RIM and Sony Mobile Communications, as well an array of new models released by China-based smartphone vendors for the Lunar New Year holiday season will also help the ODMs and component suppliers to sustain revenue growth in the first quarter of 2013, the sources commented.