Arima Communications to benefit from LGE focus on smartphones

Handset manufacturer Arima Communications is expected to benefit from LG Electronics' (LGE's) plans to commit more resources on smartphones, according to industry sources.

With more resources committed to smartphones, LGE will likely increase ODM orders for feature phones to its only contract manufacturer Arima in the coming months, the sources said, adding Arima's shipments to LGE should top 7-8 million units, with orders for two to three models scheduled to begin in the second half of 2010.

LG Electronics (LGE) has adjusted its handset roadmap, switching its focus to the development of Android-based smartphones, while reducing the number of new handsets to be launched in 2010 from 145 to around 70, the sources said. The South Korea-based conglomerate will introduce 20 smartphones in 2010 with an estimated six million units in annual shipments. It currently produces all smartphones in-house.