Taiwan-based ODM Arima Communications shipped 11.7 million handsets in 2013, of which over 95% are smartphones, and the company aims to ship 13 million units in 2014, according to company chairman Stephen Lee at the 2014 shareholder meeting on June 23.
The 2014 target shipments are based on fast growing demand for entry-level and mid-range smartphones in emerging markets as well as a takeoff in demand for 4G LTE smartphones in many countries, Lee said.
Arima Communications is focusing its 2014 business operation on continued tapping of the Asia market, expanding production capacity in Latin America to help clients tap the market there, developing 4G LTE smartphones, tablets and wearable devices, reducing assembling labor by semi-automation of production and automation of testing, hiking yield rates to over 95% and shortening product development times to within 24 weeks, Lee pointed out.
With Motorola Mobility, NEC and Sony Mobile Communications being three main clients in 2013, Arima Communications has almost relied exclusively on Sony Mobile to maintain its operations in the first half of 2014. Arima Communications shipped 2.6 million handsets in the first quarter of 2014 and estimates its second-quarter shipments will be 2.4 million units. Mainly because shipments of two LG Electronics smartphone models and a Sony Mobile entry-level 4G smartphone model, Xperia E2, will begin in the second half, Arima Communications is likely to attain the target shipments of 13 million handsets in 2014.
Due to successful shift of operational focus from 2G feature phones to 3G/4G smartphones, Arima Communications saw 2013 operations swing into tiny net earnings per share of NT$0.41 (US$0.014) and the company has decided not to distribute any dividend. |