Taiwan`s Handset Makers to Benefit From Motorola, Sony Ericsson`s Entry Into China`s Smartphone Mark

As Motorola and Sony Ericsson have stepped up cooperation with Chinese telecom companies to explore the lucrative market for smartphones in mainland China, Taiwan`s handset and related parts makers will also benefit from the smartphone booms soon.

To stage a comeback in the global handset sector, Motorola has zeroed in on China`s huge domestic market for smartphones, and already collaborated with the country`s top three telecom companies, namely China Mobile, China Unicom and China Telecom, to launch three new Android phones, XT810, XT806 and A1680.

Industry insiders note that Motorola has already placed contract orders for these Android phones with Taiwan`s Compal Communications Inc. and Qisda Corp. The two contract manufacturers` upstream suppliers of handset parts, including Merry Electronics Co. (handset accessories), TXC Corp. (quartz crystals), Ichia Technology Inc. (handset parts), Silitech Technology Corp. (handset housings) and Largan Precision Co. (camera lenses), are expected to join the supply chains.

In the meantime, Sony Ericsson has also released its A8i, an OMS (Open Mobile System)-based phone, which is jointly promoted by China Mobile in the country, and is believed to be assembled by the Hon Hai Group.

Sony Ericsson has recently bet on Android phones, aiming to become the world`s largest Android phone vendor. Therefore, the firm`s CEO Bert Nordberg has stressed that China’s enormous market, which demands over 40 million smartphones a year, is critical for his firm’s business growth in the coming years.

However, while benefiting Taiwanese contract suppliers, the two international brands` entry into China`s smartphones market will also force Taiwan-based High Tech Computer Corp. (HTC) to square off against them. Also backed by a number of parts suppliers on the island, the HTC has just penetrated the market with own-brand products.

(by Steve Chuang)

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