Arima emerged as No.1 cell-phone maker in Taiwan in 2004

Taipei, Jan. 27, 2005 (CENS)--Arima Communication Corp., BenQ Corp. and High Tech Computer Corp. (HTC) ranked as the top-three cell-phone makers in Taiwan in 2004 in terms of revenues.

The top-three makers raked in revenues of NT$28 billion (US$877.74 million at US$1: NT$31.9), NT$27.68 billion (US$866.77 million) and over NT$18 billion (US$564.26 million), respectively, last year.

BenQ shipped 16.5 million handsets last year, higher than recorded by other local makers in the line. HTC delivered only about two million Smart Phone models but recorded the highest average unit price among the top-six local makers in the line in 2004.

This year, according industry sources, BenQ, Arima and Quanta Computer Inc. (No. 5) aim to challenge an annual revenue goal of over NT$30 billion (US$940.44 million) revenue, which only BenQ outstripped three years ago.

The sources said that most local makers of cell phones still focus on producing entry-level handset models on an original equipment manufacturing (OEM) basis, which means lower prices and margins. But they have paid more attention to average unit prices and profit margins than on shipment volumes.

Arima has not formally publicized its 2004 financial reports, but the company estimated its revenues at NT$28 billion (US$877.74 million) last year, retaining its No. 1 position in the local line. This is despite the fact that the figure is lower than NT$29.9 billion (US$937.3 million) recorded by the firm in 2003.

Arima shipped 10 million handsets last year, lower than BenQ's about 16.5 million units, but its revenues from handset-production business were higher than BenQ's due to the higher unit price for a color-display foldable handset model Arima produced for Sony-Ericsson and its long-term supply of some higher-price cell-phone models to NEC of Japan.

Industry sources pointed out that BenQ has gradually shifted its operation focus from OEM production to own-brand one, and has been actively pushing middle- and high-level handset models with higher margins to narrow its revenue gap with Arima.

HTC won the most attention due to the company's strongest profitability achieved by its Smart Phone and personal digital assistant (PDA)-phone products. HTC shipped about two million such products in 2004, the least among major local counterparts, but the average unit price was US$250 to US$300. HTC scored revenue of over NT$18 billion (US$564.26 million) in 2004 and it has mapped out an overall strategy to more aggressively develop its Smart Phone-product sales this year.

Taiwan Cell-phone Makers?Revenues for 2004
Rank	Company	2004 Revenue	2004 Shipment	2005 Revenue Goal*	2005 Shipment Goal
1	Arima	About NT$28 B.	10 million	--	10 million
2	BenQ	NT$27.68 B.	16.5 million	NT$35 B. ~ NT$40 B.	10 million
3	HTC	NT$18 B. ~NT$20 B.	About 2 million	--	--
4	Compal	NT$14.56 B.	8.6 million	NT$30 B.	15 million
5	Quanta	NT$14 B. ~NT$15 B.	5.5 million	NT$30 B.	12 million
6	Lite-On	NT$6.5 B. ~ NT$7 B.	5 million	--	8 million

*: Self-estimated by the companies.