Taiwan-based handset ODMs, including Foxconn Electronics/FIH Mobile, Compal Electronics and Arima Communications, reportedly have landed orders from regional brands in China, India and Southeast Asia, according to industry sources.
The orders from regional brands will help Taiwan-based ODMs to reduce their reliance on orders from top-tier international brands, while adding more pressure on rivals in China for competing orders in emerging markets, said the sources.
However, most ODMs declined to comment on orders from regional brands, citing client confidentiality.
Taiwan-based ODMs have adopted a business model that is similar to that of white-box handset makers in China, which requires competitiveness and flexibility in the purchase of parts and components, product developments, production and inventory controls, the sources noted.
Taiwan-based ODMs such as Foxconn are also willing to set up production bases in respective local markets where their clients are located to further cement cooperation ties, the source commented.
