LGE to outsource 22-24 million handsets from ODM and EMS makers in 2010, say sources

LG Electronics (LGE) plans to outsource 12-14 million handsets on an ODM basis and another 10 million units on an EMS basis in 2010, according to industry sources. Taiwan-based ODM maker Arima Communications and EMS maker Foxconn International Holdings (FIH) will benefit most from LGE's new outsourcing policy.

Although LGE has officially said that it aims to snap up a 20% growth in handset shipments in 2010, the Korea-based vendor is eventually looking for a higher growth of 25-30% and expects its handset shipments to reach 150-160 million units, said sources at LGE's handset component suppliers in Taiwan.

In 2009, LGE's ODM orders, including those for JDMs (joint design manufacturers), totaled eight million units, whereas EMS orders reached 3-4 million units, the sources noted.

Arima Communications has landed orders for 2-3 models from LGE for the first half of 2010 and is expected to secure additional orders for 3-5 models in the second half, revealed the sources.

Another Taiwan ODM maker, Compal Communications, is also expected to receive a portion of LGE's ODM orders, likely for smartphone models, for 2010, the sources added.