02.23.2001
GVC and Arima still tight with Ericsson

• Cellular phone giant Ericsson confirmed it has no plans to increase the number of ODM partners for low-end handsets in the foreseeable future, sticking with regular suppliers GVC Corp. (2322 'Zhi Fu') and Arima Computer (2381 'Hua Yu').

• Low-end products account for 70-80% of Ericsson's total handset shipment. Last year it outsourced 40m handsets, and we estimate it will outsource a total of around 28m handsets this year.

• GVC shipment will begin in 3Q01, so the benefits are not likely to show until 2002. We stick with the company's handset shipment target of 2m units in 2001.

BennyLo@Primasia.com +886-[0]2-2547-8869