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Digitimes Research: Taiwan ODM smartphone shipments to drop in 4Q16

Combined smartphone shipments by Taiwan-based brand handset vendors and ODMs will reach 13.82 million units in the fourth quarter of 2016, up 11.8% sequentially but down 23% on year, according to data compiled by Digitimes Research.

ODMs Compal Electronics, the Foxconn Group, Arima Communications and Wistron will see their shipments decline sequentially in the fourth quarter, offsetting shipment growths to be recorded by brand vendors, including HTC, Asustek Computer and Acer, Digitimes Research noted.

ODMs are shipping less smartphones in the fourth quarter as Sony Mobile Communications has been reducing its orders to Compal and Arima since the third quarter of 2016, while orders from BlackBerry to Wistron are also decreasing. Meanwhile, orders from LG Electronics to Arima are expected to stay flat in the fourth quarter as compared to the previous quarter.

Asustek is expected to ramp up its smartphone shipments to 4.7 million units in the fourth quarter thanks to an easing in the supply of display panels, while HTC will push up its shipments to 3.6 million units during the same period due to deferred shipments of a portion of Google's Pixel devices to the quarter, Digitimes Research noted.