Samsung and LGE reportedly placing handset rush orders

First-tier handset vendors Samsung Electronics and LG Electronics (LGE) have been placing rush orders with Taiwan ODM handset makers and handset component suppliers, according to industry sources.

Combined handsets shipped by Taiwan makers for Samsung and LGE in the first quarter will be at least 10% higher than expected, and will continue to grow 10% sequentially in the second quarter, estimated market sources.

Samsung and LGE apparently are trying to leverage on shipment volume to expand their market shares during the current business downturn, said the sources, who also estimate that worldwide handset shipments by Samsung and LGE are likely to hit 50 and 25 million units, respectively, in the second quarter.

Despite rush orders from Samsung and LEG, other market observers contended that the handset industry has not yet bottomed out from the downturn, given that other handset vendors are still initiating cost-reduction measures to cope with slacking demand and that Motorola and Sony Ericsson are reportedly to focus mainly on the high-end segment in order to reduce losses.