InterDigital Inc (IDCC)

[thelurker]

Arima Communications steps into tablets
Daniel Shen, Taipei; Adam Hwang, DIGITIMES [Tuesday 20 August 2013]
Taiwan-based smartphone ODM Arima Communications has extended product development and production to tablets and has finished development of 7- and 8-inch models, with shipments expected to begin in the fourth quarter of 2013, according to the company.

In order to reduce business risks and increase stability, Arima has been making efforts to diversify its product lines and clients, company president Owen Chen said.

For new product lines, Arima has developed 7- and 8-inch tablets focusing on special applications such as entertainment and education and is talking about ODM orders with existing and potential clients, Chen said. Since existing R&D resources, component procurement and production management for smartphones can be applied to tablets, Arima has not needed make much additional investment in the tablet business, Chen indicated.

In addition, Arima has been developing wearable smart accessories and is talking about cooperation with potential clients, Chen said. Arima expects to begin shipments of smart bracelets, its first wearable smart accessory, in the first half of 2014, Chen noted. Tablets and wearable smart accessories will contribute to Arima's consolidated revenues and become a source of revenue growth beginning in 2014, Chen indicated.

Arima's handset business began to profit in the second quarter of 2013, Chen said. While Japan-based vendor NEC Casio Mobile Communications has stopped smartphone operations and ceased ODM orders with Arima accordingly, Arima has obtained additional smartphone ODM orders from US- and Japan-based clients, Chen noted. With target shipments of 12 million handsets for 2013, Arima expects to ship at least 11 million units in 2013 based on orders received, Chen said. Arima has obtained ODM orders for 5-6 smartphones to be shipped in 2014, Chen indicated.