Tuesday, June 21, 2011

Component makers may suffer on poor Nokia, RIM outlook

Some Taiwan-based handset component makers including Merry Electronics, Ichia Technologies and Silitech Technology may see weak sales in the second half of 2011 as Nokia and Research in Motion (RIM), two of their major clients, have both revised their guidance for the second quarter or even for all of 2011, according to industry sources.

Nokia and RIM have been the largest buyers of handset keypads, and Nokia has been the most important client for acoustic components for local makers, the sources noted.

However, Nokia and RIM are expected to see their market shares dented by other brand vendors due to a weak portfolio of new high-end models to enable their competition in the smartphone market, the sources said.

Merry has managed to cut into the supply chain for Apple's iPhones, and therefore has minimized the impact resulting from reduced orders from other clients, indicated the sources.

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